What is the formula for Weighted or Equivalent Units given in the material?

What is the formula for Weighted or Equivalent Units given in the material?

• A. ET = BAC
• B. ET = QTD / TQ × AC × TT.
• C. ET = ACWP + (BAC - BCWP).
• D. ET = BCWS × TT.

Answer: (B)

Weighted or Equivalent Units measure translates progress and time into a single comparable unit of work. The fraction of work completed, represented by QTD divided by TQ, tells you how much of the total work has been finished. Multiplying that proportion by the Actual Cost allocates cost to the portion of work done. Including the TT factor then weights this cost by time, converting everything into an equivalent unit that reflects both progress and duration. So the formula ET = (QTD / TQ) × AC × TT encapsulates how far along you are, what you’ve spent, and how time affects the equivalence of that work. For example, if you’ve completed 40 of 100 units (QTD/TQ = 0.4), spent $80 (AC), and the time factor is 1.0, ET = 0.4 × 80 × 1.0 = 32. If the time factor is 1.2, ET becomes 38.4, showing the extra weight time adds to the equivalent units. Other choices would mix in total budget or planned values rather than converting actual progress and time into a single equivalent measure, so they don’t match the intended concept.

Weighted or Equivalent Units measure translates progress and time into a single comparable unit of work. The fraction of work completed, represented by QTD divided by TQ, tells you how much of the total work has been finished. Multiplying that proportion by the Actual Cost allocates cost to the portion of work done. Including the TT factor then weights this cost by time, converting everything into an equivalent unit that reflects both progress and duration. So the formula ET = (QTD / TQ) × AC × TT encapsulates how far along you are, what you’ve spent, and how time affects the equivalence of that work.

For example, if you’ve completed 40 of 100 units (QTD/TQ = 0.4), spent $80 (AC), and the time factor is 1.0, ET = 0.4 × 80 × 1.0 = 32. If the time factor is 1.2, ET becomes 38.4, showing the extra weight time adds to the equivalent units. Other choices would mix in total budget or planned values rather than converting actual progress and time into a single equivalent measure, so they don’t match the intended concept.