In process costing system, when partially completed units are expressed in terms of fully completed units they are known as
A)Completed units
B)Equivalent units
C)Unfinished units
D)Transferred units

Question

Quizplus · Accepted Answer

Equivalent units in a process costing system refer to the number of fully completed units that could have been produced given the amount of work actually performed on partially completed units. This concept allows for the calculation of costs per unit in processes where goods are produced in a continuous flow or in batches.

In Process Costing System, When Partially Completed Units Are Expressed