Asked by Aiden Fraser on Jul 09, 2024
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Both job order and process cost accounting use equivalent units of production to determine costs.
Equivalent Units
Equivalent units are a concept in cost accounting used to allocate costs to partially completed goods, treating them as if they were a certain number of fully completed units.
Job Order
A custom or production order that specifies the details for manufacturing a certain product or products for a customer.
Process Cost
The cost associated with a production process, allocated to products based on the process they go through rather than being directly traced to the product itself.
- Gain an understanding of the composition and determination of equivalent production units.
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Learning Objectives
- Gain an understanding of the composition and determination of equivalent production units.
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