Cost Unit

Cost unit is a base on which cost can be ascertained. The base can be in terms of unit of quantity of a good, service or timespan

. It is a standard or unit of measurement (UM) such as number, length, time or even volume or value

Examples

One kilogram of sugar

One kilometer of tarmacked road

A bunch of bananas e.t.c

About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.