[dani4842]

What is primary purpose of process costing and what are the different sections of cost of production report?

[morgaine300]

I think if you looked, you'd be able to find the answers to these in your book.

As for the "sections," depends on how the book decided to divide it up. They should be showing you section by section how to do the report (which probably takes up most of the chapter), and that's your sections. Often, when there are "sections," or "3 methods," or "5 kinds of" or that type of thing, it's very book-dependent as they can divide things up in all kinds of manners.

As for the purpose of process costing? Jeez, that's an ambiguous question. I'm not sure exactly what they are looking for there. The purpose of any accounting work is basically tracking a lot of dollar values for various reasons. Process costing is one method used to track production costs. It's a pretty ambiguous, open-ended question. i.e. process costing versus job costing? Or the purpose of any production costing? The difference between process and job costing is really in the WIP, so are they referring specifically to it? Again, a bit ambigous. If they think there's a "primary" purpose, it should say so somewhere in the chapter.