What do you mean by Cost Unit?

The Meaning and Definition of Cost Unit. (Cost Accounting)

Cost unit is a device for the purpose of breaking up cost in to smaller sub-divisions. It may be unit quantity of the product, services or time in relation to which costs are ascertained or expressed.

Michell Consulting Group



Ordinarily cost unit is the expression in the form of count, weight, dimension etc. The main objective of cost accounting is to find out cost per unit of out put. It means the out put has to be measured in identifiable units in relation to which costs may be ascertained.

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