Respuesta :
Answer:
b. To project production
Explanation:
First we understand the meaning of Cost Production report. It represents a detailed report of expenses incurred in the course of production. It includes all expenses that affect production including: labor, consumables, royalties, overheads, raw materials as long as they directly impact on production.
To Project Production however, involves two things: first is the resources available to the manufacturer to manufacture the product as well as the demand for the product or good to be manufactured.
The cost of production report will assist to control operations, to improve operations and also to isolate problems but these costs are not relevant to project production.
Answer:
The correct answer is letter "B": to project production.
Explanation:
The Cost of Production Report (CPR) is used in process costing to summarize the production and cost activity of a department within an organization during a specific period. The CPR helps managers to find out which production costs are the highest, where the company is struggling in the production process, and if there are relevant changes in unit costs for direct materials or labor.
Thus, it is not a function of the CPR to project future production.
