equivalent units

equivalent units(effective units) Unfinished units of production that remain in a process at the end of a period as work in progress (or process). Degrees of completion are assigned to each cost classification, which, when applied to the number of units in work in progress, give an equivalent number of completed units. For example, if the number of units of work in progress is, say, 3,000 units to the following degrees of completion, the effective units are given in the table overleaf. The equivalent units have an impact on the valuation of opening and closing work in process.

Equivalent units. A simple example

• controllable costs
• controllable investment
• controllable turnover
• controllable variance
• controlled foreign company
• controller
• controlling interest
• control process
• convenience product
• conventional distribution channel
• convergence
• convergence criteria
• conversational systems
• conversion
• conversion cost
• convertible
• convertible revolving credit
• convertible term assurance
• conveyancing
• cookie
• copy testing
• copywriter
• core competency
• core inflation
• core job characteristics