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what’s the relation between cost centre and cost unit? which one’s scope is larger, cost centre or cost unit?
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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
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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 calculatedCOST 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,https://www.ffqacca.co.cc/web_images/classification___behaviour_-_www.ffqacca.co.cc.pdf
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