In process costing,a company has some unfinished units at the end of the accounting period.________ units are the number of completed units that could have been produced from the inputs used to create the unfinished units.
A) Physical
B) Convertible
C) Fully-complete
D) Equivalent

Question

Quizplus · Accepted Answer

The term used in process costing to describe the number of completed units that could have been produced from the inputs used to create the unfinished units is "equivalent units." This is because the unfinished units are not yet complete and cannot be counted as physical or fully-complete units. They are, however, partially complete and can be measured in terms of the equivalent number of complete units that could be produced from the inputs used.

In Process Costing,a Company Has Some Unfinished Units at the End