Why May the Number of Equivalent Units in Work in Process

question 26

Multiple Choice

Why may the number of equivalent units in Work in Process inventory differ for material and for conversion costs?

• A)A mistake was made in counting or recording the inventory amounts.
• B)Material and conversion costs enter the production process at different times and at different rates.
• C)Conversion costs are calculated at the end of the accounting period.
• D)Some units may have been transferred in from previous departments.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Variability

The extent to which data points in a set differ from each other and from the average of the set, indicating the spread or dispersion.

Double-Blind Study

A double-blind study is a research design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Experimental Group

In an experiment, the group of participants who are exposed to the independent variable to assess its effect on a dependent variable.