Equivalent production is also called
A)conversion costs.
B)completed work cell units.
C)equivalent units.
D)equivalent transfer.

Question

Quizplus · Accepted Answer

Equivalent units is the correct term for the amount of production units that have been completed or partially completed during a specific period of time, taking into account partially completed units and their corresponding costs. It is used in process costing to determine the cost of goods sold and the ending inventory value. Choice A is incorrect as conversion costs refers specifically to the direct labor and overhead costs required to convert raw materials into finished goods. Choice B is incorrect as completed work cell units refers to the number of units that have been fully completed within a cell or work center, without considering partially completed units. Choice D is incorrect as equivalent transfer is not a commonly used term within accounting or production management.

Equivalent Production Is Also Called