Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment? A. In most cases, there is no difference between physical units and equivalent units of production. B. Companies often use a combination of a process costing and job order costing systems. C. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process. D. All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period. E. In most manufacturing environments, it is not possible to conduct a physical count of units.

C. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process.

Explanation:

The equivalent unit is the unit of production that has been completed based on a percentage of completion.  It is usually calculated for the conversion costs, which is added evenly throughout the period.  The equivalent unit of production expresses the amount of work done on units of output that are partially completed at the end of an accounting period.   Basically, the fully completed units and the partially completed units are expressed in terms of fully completed units.  This helps in assigning costs to the partially completed units.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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