Question

Equivalent-unit calculations are necessary to allocate manufacturing costs between ________?

1) Different departments
2) Different products
3) Different time periods
4) Different cost centers

Answer 1

Equivalent-unit calculations are necessary to allocate manufacturing costs between different products.

Step-by-step explanation:

Equivalent-unit calculations are necessary to allocate manufacturing costs between different products.

Equivalent units refer to the number of complete units that could have been produced with the amount of input used during a given period. It takes into account the units that are partially completed and estimates the equivalent units based on the percentage of completion.

By calculating equivalent units, manufacturing costs can be allocated accurately to different products based on their respective production levels and the amount of input utilized.