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good day sir
how do we determine cost centers and cost units in service industries. For instance in a Barber Shop l had thought that the Barber man (the one cutting the client’s hair) is a cost unit but unfortunately it seems wrong . kindly assist
I can’t really answer you without seeing the question that you are referring to.
However in a barber shop you are wanting to calculate the cost for one customer – it is the customer that is the cost unit. The cost unit is what it is you are wanting to know the cost of (in order, for example, to decide on a selling price).
Have you watched the free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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