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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost unit
Hello Sir, what do we mean by compsite cost unit and I am finding it very difficult to ascertain the right cost unit in examples such as for hotels ( occupied bed per day) etc.
The word composite itself is irrelevant. But what is means is where there is more than one factor involved.
You have to ask yourself what do we want the cost for? We want it so we can decide what price to charge. So then ask yourself what are we selling?
A hotel (for example) will quote a price per day for staying in / occupying the room. So what we need is the cost per occupied room per day.