Unit costs in a process-costing system are derived by using:
A) in-process units.
B) completed units.
C) physical units.
D) equivalent units.
E) a measure of activity other than those listed above.

Question

Quizplus · Accepted Answer

Equivalent units are used in process costing to derive unit costs. This method accounts for the partial completion of units at the end of a period by converting them into an equivalent number of fully completed units.

Unit Costs in a Process-Costing System Are Derived by Using