cost unit

A unit of production for which the management of an organization wishes to collect the costs incurred. In some cases the cost unit may be the final item produced, for example a chair or a light bulb, but in other more complex products the cost unit may be a sub-assembly, for example an aircraft wing or a gear box. Cost units may also be expressed as batches of items, particularly when the unit cost of the individual product would be very small; for example, the cost unit for a manufacturer of pens might be the cost per thousand pens. See also cost object

Big dictionary of business and management. 2014.

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  • cost unit — A unit of production for which the management of an organization wishes to collect the costs incurred. In some cases the cost unit may be the final item produced, for example a chair or a light bulb, but in other more complex products the cost… …   Accounting dictionary

  • cost unit — noun : a unit of a commodity or service selected as the appropriate unit for cost purposes * * * a quantity or unit of a product or service whose cost is computed, used as a standard for comparison with other costs. * * * cost unit, an amount… …   Useful english dictionary

  • cost unit — a quantity or unit of a product or service whose cost is computed, used as a standard for comparison with other costs. * * * …   Universalium

  • cost unit — /ˈkɒst junət/ (say kost yoohnuht) noun the basis of computing of costs; a unit of product, a unit of process, or the like …   Australian English dictionary

  • cost unit — Fin a unit of product or service in relation to which costs are ascertained …   The ultimate business dictionary

  • unit cost — ➔ cost1 * * * unit cost UK US noun [C] ACCOUNTING, PRODUCTION ► the cost of producing one single product, calculated by dividing the cost of producing a group of products by the number produced: »Average unit costs for SMEs have risen for the… …   Financial and business terms

  • cost — Expense; price. The sum or equivalent expended, paid or charged for something. See also actual cost costs net cost rate costing cost bond …   Black's law dictionary

  • Cost-Volume-Profit Analysis — Cost Volume profit (CVP), in managerial economics is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short run decisions. Cost volume profit (CVP) analysis expands the use of information provided by… …   Wikipedia

  • Cost Per Engagement — (CPE) is an online advertising pricing structure introduced into the market in 2008. [ [http://www.techcrunch.com/2008/07/09/videoegg launches new video ad units maybe youtube should pay attention TechCrunch] , TechCrunch (2008 7 9)] Differing… …   Wikipedia

  • Cost-plus pricing — is a pricing method used by companies to maximize their profits. The firms accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost, and then charging a price which is determined …   Wikipedia

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