A physical flow schedule shows the units to account for and what happened to them during the production process. It is distinct from an equivalent units schedule and is used for tracking inventory and production stages
The statement that is true of a physical flow schedule is: a. It shows the units to account for and what happened to them. Essentially, a physical flow schedule is a detailed document that traces the physical flow of units through an accounting period, categorizing and summarizing how units were processed, how many were started and completed, and how many are left in work-in-progress stages. This schedule is a tool used by managers to track the status of products or services within the manufacturing or service-delivery pipeline.
It should not be confused with an equivalent units schedule, which focuses on assigning costs to the units based on an equivalent unit of production for work done to date. This confusion may arise from the similar contexts they are used in, but their functions are distinctly different.
In conclusion, understanding the function of a physical flow schedule is crucial for accurately monitoring inventory and the production process within a business.