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:

Past Maintenance

Support or upkeep that was required or provided in the past, often related to financial support for a person.

Subcontractors

Individuals or companies hired by a primary contractor to perform specific parts of a larger project.

General Contractor

A principal contractor who is responsible for the oversight of a construction project, managing subcontractors, and providing materials and labor for the completion of the job.

Holdback

A portion of funds or payment deliberately kept back until certain conditions are met or work is completed satisfactorily.