The equivalent unit concept is a means by which a process costing system can compare partially completed work done in each of the various process categories to obtain a total measure of work done.

Question

Quizplus · Accepted Answer

The concept of equivalent units is used in process costing to measure the total amount of work done, even if some of the units are only partially completed. It allows for an accurate comparison of the costs incurred in each process category, as well as the total cost of production. Therefore, the statement is true.

The Equivalent Unit Concept Is a Means by Which a Process