NOT counting spoiled units in the equivalent-unit calculation results in:

Question

Quizplus · Accepted Answer

Not counting spoiled units in the equivalent-unit calculation results in a smaller denominator, which leads to a higher cost per good unit. This is because the cost of producing the spoiled units is excluded from the calculation, resulting in a higher cost per unit for the good units produced. This approach does not provide better management information as it ignores the cost of the spoiled units, which is also an important factor in assessing the overall cost of production.

NOT Counting Spoiled Units in the Equivalent-Unit Calculation Results In