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    Question

    Which of the following is the best explanation of the relevance of equivalent production units in process costing?

    A A means of equalizing production charges into stock each period Correct Answer Incorrect Answer
    B The conversion of partly completed units into an equivalent number of completed units in order that costs may be shared equitably Correct Answer Incorrect Answer
    C The expression of losses in terms of an equivalent number of units of good production in order that their value may be calculated Correct Answer Incorrect Answer
    D A means by which the output achieved may be compared with the equivalent quantity budgeted for the period under review Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The conversion of partly completed units into an equivalent number of completed units in order that costs may be shared equitably is the explanation for Equivalent Production

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