ECONOMICS

Detailed explanation-1: -Cost unit vs unit cost Cost unit is the standard unit for buying the minimum of any product. Unit cost is the minimum cost for buying any standard unit.

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: -Costing is the process of determining the cost of a product but the cost accounting is a technique to assist the management or business to in making the various budgets and standards.

Detailed explanation-4: -This method is also known as ‘unit costing’, as not only the cost of the total output, but also the cost per unit of output is ascertained under this method. Under this method cost units are identical. This method is also called ‘output costing’, as cost is ascertained for the total output of a product.