Equivalent Units Are Calculated by

question 29

Multiple Choice

Equivalent units are calculated by

• A) multiplying the percentage of work done by the equivalent units of output.
• B) dividing physical units by the percentage of work done.
• C) multiplying the percentage of work done by the physical units.
• D) dividing equivalent units by the percentage of work done.

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Definitions:

Direct Write-off Method

An accounting practice where uncollectible accounts receivables are written off directly against income at the time they are deemed noncollectable.

Allowance Method

An accounting technique used to account for bad debts, which estimates and sets aside a portion of accounts receivable deemed unlikely to be collected.

Uncollectible Receivables

Debts owed to a company that are considered to be uncollectable, indicating that the company does not expect to receive payment due to the debtor's inability to pay.

Percentage of Sales

A financial ratio that compares a particular expense or cost to the total sales revenue, often used to analyze cost behavior or performance.