Module 03 Discussion Forum Production Reports Are Used

Module 03: Discussion ForumProcess costing is a method of allocating production overheads using the processes the product products go through. Overheads allocated to each of the production processes and further spread to the number of units produced in each process. Process costing can be used in controlling and improving operations. Process costing enables the use of equivalent unit of production to represent the amount of work done by each process in the production. Equivalent units enables assessment of partially completed units to measure partially completed units. Therefore process costing reports can be used to assess the relative efficiency of each production process and to point out inefficiencies. The cost of production for completed units can be disaggregated into different processes to facilitate comparison of the cost of each process with the product value added by each process CITATION Hor67 \l 7177 (Horngren, 1967). Cost control is the practice of identifying and controlling expenses involved in a business. Process costing facilitates cost control by making it possible to budget for each production process. The cost incurred for each process can then be compared with the budgeted cost to reveal variance. Investigation of variances can be used to reveal and address