Unit costs in a process-costing system are derived by using:
A) in-process units.
B) completed units.
C) physical units.
D) equivalent units.

Question

Quizplus · Accepted Answer

Unit costs in a process-costing system are derived by using equivalent units. Equivalent units are the product of the number of partially completed units and the percentage completion of those units with regard to the total units. This method allows for accounting for partially completed units and considers the degree of completion of each unit when calculating the total cost.

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