Which of the following is NOT correct about cost center and cost unit? Select one: a. A cost center is defined as "a location, person, or item of equipment for which costs may be ascertained and used for the purpose of control. b. a cost center refers to a section of the business to which costs can be charged. It may be a location, an item of equipment, or a person. c. A cost unit is defined as a unit o/product, service or time in relation to which cost may be ascertained or expressed. d. In any organization, there is either cost center or cost unit; they are alternatives for each other.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Which of the following is NOT correct about cost center and cost unit?
Select one:
a. A cost center is defined as "a location, person, or item of equipment for which costs may be ascertained and used for the purpose of control.
b. a cost center refers to a section of the business to which costs can be charged. It may be a location, an item of equipment, or a person.
c. A cost unit is defined as a unit o/product, service or time in relation to which cost may be ascertained or expressed.
d. In any organization, there is either cost center or cost unit; they are alternatives for each other.
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