Two Methods Used to Determine Equivalent Units of Production in Process

question 138

Multiple Choice

Two methods used to determine equivalent units of production in process costing are

• A) weighted average and FIFO
• B) FIFO and LIFO
• C) weighted average and LIFO
• D) weighted average and exact costing

---

Definitions:

Probabilities

A measure representing the likelihood or chance of certain events occurring, expressed as a number between 0 and 1.

Uncertainty

A lack of definite knowledge or predictability about outcomes, often factored into decision-making and risk assessments.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.