Cost Unit.

Q8. What do you mean by cost unit?
Ans. It is a unit of product, service, or time (or combination of these) in relation to which cost maybe a ascertained or expressed. Cost unit are usually the units of physical measurements like number, weight, length, Time and value. For example, number in automobile industry, ton in cement industry, liter in chemical factory etc. The unit selected must be one with which expenditure can be most readily associated and is generally a unit clearly appropriate to the business.

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