The Purpose of the Equivalent-Unit Computation Is to ________

question 101

Multiple Choice

The purpose of the equivalent-unit computation is to ________.

• A) convert completed units into the amount of partially completed output units that could be made with that quantity of input
• B) use a common metric to estimate the amount of work done on units in a period
• C) predict the future production capabilities of the organization
• D) satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units

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Definitions:

Protective Service Workers

Individuals employed in jobs that focus on the protection of people and property, including police, firefighters, and security guards.

MRP

Marginal Revenue Product - The additional revenue generated from employing one more unit of a factor, such as labor or capital.

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output.

Total Output

The total quantity of goods and services produced by an economy or firm within a certain period.