Which of the following best describes the term equivalent units?
A) partially completed units expressed in terms of fully completed units
B) partially completed units of output that will be sold as is
C) substitute of units that are partially completed
D) different types of units that have same selling price

Question

Quizplus · Accepted Answer

Equivalent units are partially completed units expressed in terms of fully completed units. This measure is used in process costing to account for the costs incurred in partially completed units that are in various stages of production. By expressing these units in terms of fully completed units, it allows for easier comparison of the costs associated with production and helps determine the total cost of production.

Which of the Following Best Describes the Term Equivalent Units