Question

What issues should a manager focus on when reviewing the equivalent units​ calculation?

To show better​ performance, a department supervisor might report a

higher or lower

degree of completion resulting in

understated or overstated

cost per equivalent unit and

overstated or understated

operating income. In other​ words, estimates of degree of completion can help

to smooth earnings from one period to the next, controlling production cost or increase the production efficency resulting in less waste

To encourage increased productivity, guard against the possibility of bias or encourage cost savings.

managers should ask supervisors specific questions about the process they followed. Top management should always emphasize

obtaining the correct answer, regardless of how it affects reported performance or achieving the highest reported performance regardless of the method used.

This emphasis drives

ethical actions or team work

throughout the organization.

Answer 1

To show better​ performance, a department supervisor might report a higher degree of completion resulting in understated cost per equivalent unit and overstated operating income.

In other​ words, estimates of degree of completion can help to smooth earnings from one period to the next, controlling production cost or increase the production efficiency resulting in less waste

managers should ask supervisors specific questions about the process they followed. Top management should always emphasize

obtaining the correct answer, regardless of how it affects reported performance or achieving the highest reported performance regardless of the method used.

This emphasis drives ethical actions throughout the organization.