COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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hotels
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hospitals
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schools
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none of the above
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Detailed explanation-1: -In the hotel industry, the composite unit will be room/day.
Detailed explanation-2: -SERVICE COST UNIT For example, Hotels may use the ‘Occupied Room Days’ as an appropriate unit for cost ascertainment and control. Patient per day, room per day or per bed, per operation etc. Per item, per meal etc.
Detailed explanation-3: -Sometime two measurement units are combined together to know the cost of service or operation. These are called composite cost units. For example, a public transportation undertaking would measure the operating cost per passenger per kilometre.
Detailed explanation-4: -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.