Asked by Raytchelle Miranda on Jul 26, 2024
Verified
Equivalent units of production are always the same as the total number of physical units finished during the period.
Equivalent Units
A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units.
Physical Units
A measure of quantity, such as items or pieces, used to quantify the inventory, output, or production level of a business.
- Comprehend the principle of equivalent units of production within a process costing framework.
Verified Answer
TS
Trevor SherifJul 28, 2024
Final Answer :
False
Explanation :
Equivalent units of production refer to the number of partially completed units that are equivalent in terms of direct materials and conversion costs to the number of completed units. Therefore, the equivalent units of production will not always be the same as the total number of physical units finished during the period.
Learning Objectives
- Comprehend the principle of equivalent units of production within a process costing framework.
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