Which of the Following Is Not Correct

question 47

Multiple Choice

Which of the following is not correct?

• A)Equivalent units of production are used to determine the cost per unit of all products, whether completed or not.
• B)The equivalent units of production of ten units that are 20% complete is two full units.
• C)Equivalent units of production is an expression of the number of units that would have been started and finished if all of the effort were directed at that purpose.
• D)The weighted-average method of computing equivalent units assumes that products are at the same point of completion for both materials and conversion costs.

---

Definitions:

Discount Rate

In discounted cash flow (DCF) analysis, this rate is applied to calculate the present value of anticipated cash flows.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Discount Rate

In finance, it is the interest rate used to determine the present value of future cash flows. In monetary policy, it's the rate at which commercial banks borrow from the central bank.

Salvage Value

This is the estimated residual value of an asset at the end of its useful life.