The Computation of Equivalent Full Units Is Generally Not Necessary

question 69

Multiple Choice

The computation of equivalent full units is generally not necessary when:

• A) Beginning work-in-process inventories are significantly larger than ending work-in-process inventories.
• B) Beginning and ending work-in-process inventories differ only slightly.
• C) The number of units in ending work-in-process exceeds the number of units completed and transferred to finished goods during the period.
• D) Per-unit costs become distorted as a result of not computing equivalent full units of production.

---

Definitions:

Arbitrator's Decision

A legally binding resolution made by an arbitrator, who is a neutral third party, in a dispute between parties outside of court.

Appeal

The process by which a case is brought before a higher court for review of the decision of a lower court.

Deference

The respectful submission or yielding to the judgment, opinion, or decision of another.

Private Trial

An ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute.