Why Are Equivalent Units of Production Used in Process Costing

question 3

Multiple Choice

Why are equivalent units of production used in process costing?

• A) To allocate overhead costs
• B) To determine the value of work in process and finished goods inventories
• C) To aid in determining costs per unit and costs of inventories in each process
• D) To determine the cost per finished unit

---

Definitions:

Constructive Eviction

A situation where a landlord's actions or a property's condition effectively force a tenant to move out, thereby breaching the lease agreement.

Furnishes Heat

Providing warmth or heat to a space or environment, typically as a utility service.

Unreasonable Abandonment

In legal terms, refers to the act of leaving or surrendering a property or right without just cause or in a manner deemed excessive or unjustified.

Periodic Tenancy

A rental agreement that continues for successive periods (such as month-to-month or year-to-year) until either the landlord or tenant terminates it.