Which Statement Best Defines the Concept of Equivalent Units of Production

question 18

Multiple Choice

Which statement best defines the concept of equivalent units of production?

• A) Equivalent units are the measure of a period's output.
• B) Equivalent units are the units completed in a department.
• C) Equivalent units are the total of the units produced by all departments.
• D) Equivalent units are the number of units completed at the end of the last process.

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Definitions:

Factor Of Production

An essential input to the production process, such as labor, capital, land, and entrepreneurship.

Marginal Productivities

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Earnings Alteration

Changes or modifications to the amount of money earned by an individual or company.

Rental Price

The amount of money paid periodically for the use of an asset, property, or piece of equipment.