When partially completed units are converted to a comparable number of completed units, they are referred to as
A)conversion units.
B)transferred-out units.
C)equivalent units.
D)units to be accounted for.

Question

Quizplus · Accepted Answer

Partially completed units that are converted to a comparable number of completed units are referred to as equivalent units. This is because the process of converting them involves determining how much work or processing is still required to finish them, and expressing that amount in terms of complete units. This helps to streamline the accounting process and provide a more accurate picture of the production process. Choices A and B are incorrect because they do not accurately describe this concept. Choice D is too broad and does not specifically address the conversion of partially completed units.

When Partially Completed Units Are Converted to a Comparable Number