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equivalent units

A Dictionary of Accounting,  January, 1999  by R. HUSSEY

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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 ...

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