How Is the Cost Per Equivalent Unit Computed

question 72

Multiple Choice

How is the cost per equivalent unit computed?

• A)Total equivalent units divided by total costs to account for
• B)Total costs to account for divided by total equivalent units
• C)Costs in beginning WIP Inventory divided by equivalent units in beginning WIP
• D)Costs added to production during the month divided by equivalent units in ending WIP

---

Definitions:

Cost Classifications

The categorization of costs based on their characteristics, such as by behavior, purpose, or relevance to decision making.

Cost Data

Refers to the collection of financial information related to the production, operation, or management of a business that is used for budgeting, cost control, and decision-making purposes.

Value Chain

A sequence of activities that a company performs to design, produce, market, deliver, and support its products.

R&D

Research and Development, which refers to the activities companies undertake to innovate and introduce new products or services.