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.

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Definitions:

Bits

The smallest units of data in computer processing, each of which can hold a value of either 0 or 1.

Sequential Function Chart

A graphical programming language used for programmable logic controllers (PLCs) to describe the sequence of operations in an industrial process.

Function Block

Rectangular block with inputs entering from the left and outputs exiting on the right.