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

Unit costs in process-costing system are derived using equivalent units, which take into account both completed units and units in process at the end of a period. This method is used to allocate the total cost of production evenly across all units of output produced, including ones that are partially complete at the end of the period. Using in-process units, completed units, or physical units alone would not accurately reflect the true cost of production for a partially completed unit.

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