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.