Cost accounting unit 1 notes

  • What is cost unit notes?

    A cost unit is a unit of measurement for the quantity of a product or service.
    A cost unit is a unit of amount of product, service, or time (or a mix of these) that can be used to calculate or represent costs.
    To put it another way, a cost unit is a standard or unit of measurement for the goods or services produced..

What is unit costing?

Unit costing refers to the cost procedure, which is used in concerns where production is made at a large level and manufacture is continuous.
The products manufactured are of homogenous nature and units are identical.
From the point of view of cost analysis this method is very simple because total cost is divided by total number of unit produced.


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