ECONOMICS

Detailed explanation-1: -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-2: -As per The Chartered Institute of Management Accountants, London, a unit of cost as “a unit of product or service in relation to which we ascertain costs”.

Detailed explanation-3: -Expert-Verified Answer b) Cost Unit is a quantitative unit of product or service or time in relation to which costs are ascertained or expressed.

Detailed explanation-4: -Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or. expressed.

Detailed explanation-5: -Simple Unit: These use a single standard or unit of measurement of the goods manufactured (e.g., per piece, per kilogram, per quintal, per ton, per gallon, or per meter). Composite Unit or Complex Unit: These combine two simple units (e.g., per passenger-kilometer, per ton-kilometer, or per kilowatt-hour).