The number of equivalent units of production may be larger than the number of completed units during the period.

Question

Quizplus · Accepted Answer

This is because the concept of equivalent units of production refers to the amount of work done on partially completed units, which is expressed in terms of completed units. Therefore, if there are partially completed units, the number of equivalent units of production will exceed the actual number of completed units during the period.

The Number of Equivalent Units of Production May Be Larger