Why Is It Necessary to Calculate Equivalent Units of Production

question 18

Multiple Choice

Why is it necessary to calculate equivalent units of production in a department?

• A)A physical count of units is impossible.
• B)A company may transfer numerous batches out during the year.
• C)The physical units in the department are always 100% complete.
• D)Some units worked on in the department are not fully complete.

Identify the criteria for determining reportable segments.

Grasp the management approach in identifying segments.

Know the disclosure requirements for segment reporting under current accounting standards.

Understand how to report revenues, profits, and assets to segments.

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