Separate equivalent units of production usually are calculated for materials and conversion costs.

Question

Quizplus · Accepted Answer

This statement is true. Equivalent units of production are separate for materials and conversion costs because they have different characteristics and may require different methods of measurement. Materials are typically measured in physical units, while conversion costs are measured in terms of the degree of completion of the product. Separating equivalent units of production for materials and conversion costs allows for a more accurate understanding of the costs associated with producing a product.

Separate Equivalent Units of Production Usually Are Calculated for Materials