Which of the following is False concerning equivalent units?
A) Equivalent units are calculated separately for each cost category.
B) Equivalent units are equal to physical units.
C) Equivalent units measure output in terms of the physical quantities of the inputs consumed.
D) Equivalent units are necessary when process costing is used.
E) The number of equivalent units may be identical for direct materials and for conversion costs.

Question

Quizplus · Accepted Answer

Equivalent units are not necessarily equal to physical units. They calculate the amount of work that is done on partially completed units, thus measuring output in terms of the physical quantities of the inputs consumed.

Which of the Following Is False Concerning Equivalent Units