GLOSSARY of Costing & Management Accounting TermsAlphabet E
Economic order quantity 
The amount of purchases which should be made at any one time to minimize the total costs of stock 
Efficiency ratio 
Actual production in standard hours divided by actual number of hours worked. The result is expressed as a percentage 
Equivalent units 
Partly completed units expressed as equivalent to fully completed units. Therefore 5,000 units are half or 50% complete is equivalent to 2,500 fully completed units. 
Expected standard 
A standard which can be attained and is based on prevailing conditions and circumstances of the organization. 




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