Many studies have justified rabbit production as a desirable and profitable venture. Most of these research investigations projected their results based on data collected through farm surveys that greatly relied on the memory recall capabilities of the respondents. These data apart from being prone to biasedness, may not be too insightful as to depict the true situation on ground. It is on this premise that this study was conceived to ascertain the cost and revenue structure as well as the profitability and efficiency of rabbit production, through actual production process using On-farm Research Approach the findings of the study were then compared with a similar one that made use of data collection through farm survey. Three does and one buck were used as start-off for the on farm research using the prevalent small scale traditional backyard method of rabbit production. Two cycles of production were monitored and used to project five cycle which is the average for subsistent rabbit production in the tropics. The results re-emphasize rabbit production as a profit and efficient productive venture. Two hours of labour time was found to be necessary to produce 1 kg of rabbit meat. The rate of return to investment was found to be 152% (that is, ₦1.52 return to every ₦1.00 invested). That for fixed cost was 1299% (that is ₦12.99 return to every ₦1.00 incurred on fixed asset) while the rate of return on variable cost was 274.5% that is ₦12.75 return to every: ₦1.00 invested on variable inputs). These were quite higher when compared with a similar research investigation that depended on farm survey. The technical data derived from this indicate that technical data are more efficient and dependable in determining production outcomes on the filed relative to survey data. As a result of this, on farm research was thus suggested as a way by which correct information on cost, returns and profitability of agricultural production could be obtained especially for baseline data collection.