Equivalent Units of Production Measures

question 56

Multiple Choice

Equivalent units of production measures:

• A) the number of partial jobs completed in the period.
• B) the production level which could have been achieved under optimum circumstances.
• C) the number of full units that could have been completely produced with the effort expended.
• D) the number of jobs started but not completed in the period.

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Definitions:

Drawing

A withdrawal made by an owner from the business for personal use.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership stake of the owners.

Revenues

The total income generated from normal business operations and other activities over a specific time period.