What is Cost Unit | Measurements used as cost units
What is Cost Unit?
A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
Measurements used as Cost units
The forms of measurement used as cost units are usually the units of physical measurement.
Such physical measurement along with the type of industry applied is presented below.
Table: Forms of measurements used as Cost units and Industries where commonly used.
| Sl. No | Cost Unit Basis | Types of Industries |
|---|---|---|
| 1 | Number | Automobile |
| 2 | Metre or Kilometre | Cable, Rope, Road Construction, Wire |
| 3 | Tonne | Iron and steel, Sugar, Cement, Mines and Quarries |
| 4 | Litre, Kilogram, Tonne | Chemicals |
| 5 | Cubic Metre | Gas, Casting |
| 6 | Square Metre | Metal Plating, Fabric Printing |
| 7 | Grors or Bag of Standard Weight | Nuts and Bolts |
| 8 | Kilo-watt hour | Power (Electricity) |
| 9 | Tonne-Kilometre, Passenger Kilometre | Transport |
| 10 | Thousand | Bricks |
