Final answer:
A production cost report is an internal document showing both production quantity and cost data for a department, including equivalent and physical units, and variable and fixed costs used for internal assessment of productivity and profitability.
Step-by-step explanation:
A production cost report is typically used within a manufacturing company's internal accounting to show both the production quantity and cost data related to a department. It does indeed show equivalent units of product, as well as physical units. The information provided by this report is crucial for assessing productivity, understanding total, variable, and fixed costs, and determining the overall profitability of the products being produced. It is not an external report but rather an internal one used to inform managers about the production process within the firm. A production cost report usually contains various sections, including a summary of physical flow of units, calculation of equivalent units, costs to account for, allocation of these costs, and finally a reconciliation of costs.