It Is Necessary to Calculate Equivalent Units of Production in a Department

question 149

Multiple Choice

It is necessary to calculate equivalent units of production in a department because

• A) a physical count of units is impossible.
• B) some units worked on in the department are not fully complete.
• C) the physical units in the department are always 100% complete.
• D) at times a department may use a job order cost system and then switch to a process cost system.

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Definitions:

Total Quality Management

An organization-wide approach to continuously improving the quality of products, services, and processes by focusing on customer satisfaction.

Inventory

The total amount of goods or materials held by a company for the purpose of resale or production.

Produces

To create, manufacture, or bring forth goods or services.

Managerial Accounting Information

Accounting information aimed at helping managers within the organization make decisions.