Indicate which of the following phrases correctly complete this sentence: "Equivalent units of production."

Question

Quizplus · Accepted Answer

Equivalent units of production are used as the basis for determining per-unit manufacturing costs in a process costing accounting system. This method allows for the calculation of costs based on the work done on both completed units and units that are partially completed during the period. Option A is incorrect as equivalent units do measure the work done during a given accounting period. Option B is incorrect as equivalent units do represent the units completed during the period and transferred out of the Production Department. Option D is incorrect as equivalent units are computed separately for each significant input consumed in the production process.

Indicate Which of the Following Phrases Correctly Complete This Sentence