Production Cost Report and Cost Allocation 1.Although the production cost report provides information needed to transfer costs from one account to another, managers also use this report for decision-making purposes.
What important questions can be answered using the production cost report?
2. cost allocation. Briefly describe this concept and identify a professional situation in which you foresee yourself using or applying this issue or concept.
3. Why do companies often allocate a share of service department costs to production departments for internal reporting purposes even though U.S. GAAP generally does not allow it for external reporting?