Which of the following statements is (are) true regarding product costing?
(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.
(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units.
A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) Neither of these is true.

Question

Quizplus · Accepted Answer

The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units, making statement B true. Statement A is incorrect because twenty cans that are 25% full are equivalent to five full cans, not four.

Which of the Following Statements Is (Are) True Regarding Product