Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8Q: What are equivalent units of production, and how are they used in process costing?
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Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing?

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