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:

Economic Development

The process through which a nation improves the economic, political, and social well-being of its people.

Saving and Investment

The act of setting aside income for future use and the use of those savings for purchasing capital goods or financial assets.

Productivity of Labor

The measure of output per worker or per hour worked, indicating how effectively labor inputs are converted into goods or services.