Cost Centre & Cost Unit

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Cost Centre & Cost Unit : 

Cost Centre & Cost Unit By: Arka Kumar Sen ICHE-D FW 2011-14

Cost Centre: 

Cost Centre Cost Centre is defined as any location, item, person or a group of these things for which costs are ascertained and used for the purpose of cost control.

Types Of Cost Centres: 

Types Of Cost Centres

COST UNIT: 

COST UNIT A cost unit is defined as "a unit of quantity of product, service or time (or a combination of these) in relation to which costs may be ascertained or expressed. In other words a cost unit is a standard or unit of measurement of the goods manufactured or services render.

Objectives of Cost Unit: 

Objectives of Cost Unit The objectives of cost accounting are as follows: a)To study, analyze and classify the cost of production . b) To ascertain the total and per unit cost of the commodity produced, work performed and service rendered C)To ascertain the profitability of different products, jobs or work orders . d) To exercise effective control over wastage and loss of materials during production. e) To provide means to measure the efficiency of labour . f) To exercise effective control on the idle time of workers and machine.