A measure of the productivity of a process with respect to its use of direct materials, direct labor, or overhead, and 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

Equivalent units of production is a measure of productivity that takes into account the work done on in-progress units as well as completed ones, and expresses this activity as the equivalent number of finished units. This calculation is necessary when using process costing, which tracks the costs of each stage of a manufacturing process instead of the costs of individual jobs.

A Measure of the Productivity of a Process with Respect