Equivalent Units Are Calculated by

question 32

Multiple Choice

Equivalent units are calculated by

• A)multiplying the physical number of units by the percentage of completion.
• B)adding the physical number of units with the number of units completed last period.
• C)subtracting the physical units finished this period from the physical units in beginning inventory.
• D)dividing the physical number of units by the percentage of completion.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

Farmer

An individual engaged in agricultural activities, involved in the cultivation of crops or the raising of livestock.

Economic Progress

The process through which an economy grows or improves its capacity to meet its population's needs and wants.

Comparative Advantage

A situation where a country, individual, or company can produce a good or service at a lower opportunity cost than others.