An equivalent unit is a measure used to convert costs incurred in the previous period to costs incurred in the current period.An equivalent unit is a measure used to convert partially completed units into the equivalent of a full unit.

Question

Quizplus · Accepted Answer

An equivalent unit is used to convert partially completed units into the equivalent of a full unit, not to convert costs from a previous period to the current period.

An Equivalent Unit Is a Measure Used to Convert Costs