COST ACCOUNTING
STANDARD COSTING AND VARIANCE ANALYSIS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following would be the most appropriate cost unit for a distribution company?
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Miles Travelled
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Tonnes Carried
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Tonne Miles
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Packages Delivered Per Driver
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Explanation:
Detailed explanation-1: -The cost unit for Goods transport organization is Ton– Kilometer – that means cost of carrying one Ton of goods over a distance of one kilometer.
Detailed explanation-2: -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-3: -Unit cost is determined by combining the variable costs and fixed costs and dividing by the total number of units produced.
Detailed explanation-4: -In the hotel industry, the composite unit will be room/day.
There is 1 question to complete.