Which of the Following Is False Concerning Equivalent Units

question 79

Multiple Choice

Which of the following is false concerning equivalent units?

• A)Equivalent units are calculated separately for each cost category.
• B)Equivalent units are equal to physical units.
• C)Equivalent units measure output in terms of the physical quantities of the inputs consumed.
• D)Equivalent units are necessary when process costing is used.
• E)The number of equivalent units may be identical for direct materials and for conversion costs.

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Definitions:

Reportable Segments

Refers to components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

AASB 8 Operating Segments

A standard that requires an entity to disclose information about its operating segments, products and services, the geographical areas in which it operates, and its major customers.