Cost unit
A cost unit is the unit of output or service for which cost is calculated. It may be a physical item, a batch, a job or a composite measure such as passenger-kilometre. Choose a measure reflecting the service and purpose of the report. Cost per unit equals the relevant total cost divided by the number of comparable units, using a consistent period and level of completion.
Worked example
A transport service costs $50,000 and supplies 250,000 passenger-kilometres. Cost is $0.20 per passenger-kilometre.
Common mistake
Do not divide by a convenient measure that ignores an important service dimension, or mix completed units with partly completed work without adjustment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |