cost centre & cost unit

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Home › Forums › ACCA Forum › ACCA F2 – FIA FMA Management Accounting Forums › cost centre & cost unit

This topic contains 2 replies, has 3 voices, and was last updated by Avatar of faizanacca Anonymous 2 years, 12 months ago. This post has been viewed 51 times

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  • November 16, 2010 at 1:36 pm #46021
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    fish21cn
    Participant

    what’s the relation between cost centre and cost unit? which one’s scope is larger, cost centre or cost unit?

    November 21, 2010 at 3:00 pm #70823
    Avatar of Seah
    Seah
    Participant

    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

    December 15, 2010 at 8:34 pm #70824
    Avatar of faizanacca
    Anonymous

    COST UNIT
    Defined by CIMA Official Terminology as
    ‘a unit of product or service in relation to which costs are ascertained’.
    Examples include:
    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

    COST CENTRE
    Defined by CIMA Official Terminology as ‘a production or service location, function,
    activity or item of equipment for which cost
    Examples include:
    Raw material preparation,
    order processing department,

    http://www.ffqacca.co.cc/web_images/classification___behaviour_-_www.ffqacca.co.cc.pdf

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