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cost object and cost unit

This topic has 1 reply, 2 voices, and was last updated 12 years ago by Fasih ur Rehman.

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November 22, 2013 at 2:19 pm #147397
maan87
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Respected sir,
i am totally confused for cost object and cost unit. cost unit is totally irritating for me even my tutor cannot explain it well. In a question, which of the following will be cost unit and options are available like, cost per cake, cost per batch, cost per kg, and my tutor told that answer is cost per batch, but what is the exactly criteria for this?
waiting for your kind reply
November 27, 2013 at 4:48 pm #148099
Fasih ur Rehman
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cost unit is the criteria in which we use its small measurement units , like meter , seconds , centi-meter etc
and cost object is a thing which we use for costing purpose like , milk , leather , wood etc…
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