COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
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A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control.
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Centres having the responsibility of generating and maximising profits
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Centres concerned with earning an adequate return on investment
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Detailed explanation-1: -Solution: Cost Unit is defined as Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
Detailed explanation-2: -A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service. Unit costs are synonymous with cost of goods sold (COGS). This accounting measure includes all of the fixed and variable costs associated with the production of a good or service.
Detailed explanation-3: -A cost unit may be defined as the quantitative unit of product or service in relation to which costs are ascertained.
Detailed explanation-4: -The cost per unit formula involves the sum of fixed and variable costs, which is then divided by the total number of units manufactured during a period of time. Here is how to find the cost per unit: Cost per unit = (Total fixed costs + Total variable costs) / Total units produced.