It is necessary to calculate equivalent units of production in a department because

A) a physical count of units is impossible.
B) some units worked on in the department are not fully complete.
C) the physical units in the department are always 100% complete.
D) at times a department may use a job order cost system and then switch to a process cost system.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, treating them as an equivalent number of fully completed units.

Physical Count

The process of manually counting the actual inventory on hand at a particular time to verify the quantities listed in accounting records.

Job Order Cost System

An accounting system that tracks costs individually for each job, rather than using a standard method for all jobs, suitable for companies producing unique or custom products.