This topic contains 2 replies, has 3 voices, and was last updated by Anonymous 6 years, 5 months ago.
what’s the relation between cost centre and cost unit? which one’s scope is larger, cost centre or cost unit?
Cost centre’s scope is larger, it is a place where costs are computed, but cost unit is a unit of product which costs are computed
Defined by CIMA Official Terminology as
‘a unit of product or service in relation to which costs are ascertained’.
Operation (in a hospital) i.e the cost per operation is calculated Barrel (in the brewing industry) i.e the cost per barrel is calculated
Defined by CIMA Official Terminology as ‘a production or service location, function,
activity or item of equipment for which cost
Raw material preparation,
order processing department,
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