Excluding spoiled units in the equivalent-unit calculation results in ________.
A) lower cost per good unit.
B) higher cost per good unit
C) better management information
D) higher cost for spoiled units

Question

Quizplus · Accepted Answer

Excluding spoiled units in the equivalent-unit calculation increases the cost per good unit since the cost of the spoiled units is now spread over fewer equivalent units. This results in a higher cost per unit for the good units.

Excluding Spoiled Units in the Equivalent-Unit Calculation Results in ________