ECONOMICS

Detailed explanation-1: -Explanation: It is a unit of product in relation to which costs may be ascertained or expressed. In the automobile industry, a cost unit is number of automobiles.

Detailed explanation-2: -Cost unit, also known as the cost per unit, the cost of goods sold or the cost of sales, is the amount of money that a company invests in manufacturing a single unit of a saleable product. The cost of unit calculation appears in the company’s financial statement.

Detailed explanation-3: -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-4: -Example of a Cost Unit: The cost unit of the steel business would be a ton, and the expense unit of the hotel business is a room. This is laid by the cost center. There are both basic units and complex units in cost units.