Which of the following is not correct about equivalent units?
A)A total measure of completed work.
B)Compares work completed in each category.
C)Combines quantity of each input in units completed units of output.
D)Combines quantity of each input in incomplete units of output.
E)Fails to convert the quantity of input into the amount of completed output units.

Question

Quizplus · Accepted Answer

Equivalent units are a concept in cost accounting used to allocate costs to partially completed goods. They do indeed convert the quantity of input into the amount of completed output units, contrary to what option E suggests. This conversion allows for the accurate calculation of the cost per unit, even when dealing with incomplete units of production.

Which of the Following Is Not Correct About Equivalent Units