An expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period is called:
A) Manufacturing overhead.
B) Units in process.
C) A job cost sheet.
D) Equivalent units of production.
E) Process cost summary.

Question

Quizplus · Accepted Answer

This expression is referred to as equivalent units of production, which measures the activity of a process by converting partially completed units into an equivalent number of fully completed units. This helps in calculating the total cost per unit produced, as partial units are assigned a proportionate share of the total costs incurred during the production process. Manufacturing overhead refers to indirect costs incurred in the production process, units in process are partially completed units that remain in production, a job cost sheet is a record of the direct materials, labor and manufacturing overhead assigned to a particular job, and a process cost summary is a report that summarizes the costs incurred during a period of production for a particular process. Therefore, none of these options fit the definition provided in the question.

An Expression of the Activity of a Process as the Number