Asked by justin woessner on Jul 01, 2024

verifed

Verified

A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

Materials Consumption Report

A detailed report that tracks the quantity and cost of materials used during a manufacturing or production process.

Materials Requisitions

Materials requisitions are formal requests issued within an organization to obtain materials or products necessary for production or operations.

Manufacturing Process

A series of steps involving the conversion of raw materials into finished products through various production operations.

  • Recognize how direct labor, direct materials, and factory overhead are accounted for in process costing.
verifed

Verified Answer

PL
Premo Lotta4 days ago
Final Answer :
True
Explanation :
A materials consumption report is a continuous inventory system that tracks the movement of materials through the manufacturing process. It eliminates the need for individual materials requisitions as all usage is tracked and recorded in real-time.