Equivalent units are the sum of direct materials and direct labour.

Name: Equivalent units are the sum of direct materials and direct labour.
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Equivalent units are a concept used in process costing that represents the amount of work done during a period, expressed in fully completed units. They are calculated separately for each cost component (direct materials, direct labor, and manufacturing overhead), not simply as a sum of direct materials and direct labor.

Equivalent Units Are the Sum of Direct Materials and Direct