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EUP or equivalent units of production is used in: A. Job order costing B. Process costing C. Life-cycle costing D. All of the above

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تم إضافة السؤال من قبل Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)
تاريخ النشر: 2014/12/02
Haris Yaqub
من قبل Haris Yaqub , Assistant General Manager Accounts and finance , Chenone stores ltd

process costing

Mohamed Ezat Mahmoud  Mady
من قبل Mohamed Ezat Mahmoud Mady , Accounting and Financial Manager , Trustmed

The Answer Is (B) process costing 

 

Mohammed Aneez Kunhirithiri
من قبل Mohammed Aneez Kunhirithiri , Chief Accountant , Ecocon Industries LLC

EUP is uses in process costing only 

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Answer B is correct  

Process costing

Lesley Lanag CMA CPA
من قبل Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

Thanks everyone for your answers. For me, the answer is B, process costing. EUP is used to compute for the cost of goods manufactured in a single process or the cost transferred out. 

Manzar Ali
من قبل Manzar Ali , Admin/Finance Assistant , Joint Construction Group Company

B

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Partially completed units already have a cost attached to them under job costing, so EUP is not related to job costing . An EUP is a measure of the amount of work done on the unfinished units expressed in terms of finished units that could have been produced for the same cost. EUP is thus relevant to Process Costing. Life Cycle Costing on the other hand takes into consideration the entire life cycle of a product or service in order to determine the cost of the product and the relative pricing thereon.

 

Ans. B Process Costing 

Ahmed kandil
من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer is b 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Some units remain unfinished at the end of the period. For each department to adequately account for the costs attached to its unfinished units, the units must be restated in terms of equivalent units of production (EUP)

Life-cycle costing:

Life-cycle costing emphasizes the need to price products to cover all the costs incurred over the lifespan of a product, not just the costs of production.

Process costing is a method of allocating production costs to products and services by avg the cost over the total units produced

Job order costing or job costing :is a system for assigning manufacturing costs to an individual product or batches of products.

Naturally : The answer is equal in relevance  to all the above.

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D. All of the above

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