Question
16. Which of the following statements about equivalent units (EU) and physical units (PU) [in process costing] regarding a particular group of units of output
16. Which of the following statements about equivalent units (EU) and physical units (PU) [in process costing] regarding a particular group of units of output manufactured in a factory are TRUE?
Group of answer choices
Its EU is determined by comparing the ratio of cost ($) spent on conversion to cost ($) spent on materials
EUs for conversion costs is partly dependent on the percentage of completion.
Its EU and PU will be the same in the absence of any work-in-progress
Its EU and PU will never be the same as there is always work-in-progress.
The cost per EU is dependent on PUs only
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Inventory Best Practices
Authors: Steven M. Bragg
2nd Edition
1118000749, 9781118000748
