In a process cost accounting system,the average unit cost of a product is determined by dividing the appropriate costs by

Question

Quizplus · Accepted Answer

In a process cost accounting system, the concept of equivalent production units is used to determine the average unit cost of a product. This concept takes into account the units that are partially completed and adjusts for the degree of completion. Therefore, dividing the appropriate costs by the equivalent production units gives the most accurate average unit cost.

In a Process Cost Accounting System,the Average Unit Cost of a Product