Equivalent units of production are equal to:
A) The number of units that could have been completed if all effort had been applied to units that were started and completed that period.
B) The number of finished units actually produced that period.
C) The number of units introduced into the process that period.
D) The number of units still in process that period.
E) Physical units that were completed this period from all effort being applied to them.

Question

Quizplus · Accepted Answer

Equivalent units of production refer to the number of finished units that could have been produced if all the effort had been focused on a particular batch or lot. It considers the work done on partially completed units and converts them into equivalent completed units. Therefore, option A, "The number of units that could have been completed if all effort had been applied to units that were started and completed that period," is the best choice.

Equivalent Units of Production Are Equal To