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.

Cost Units - What is Cost unit, Forms of measurements

Cost Units – What is Cost unit, Forms of measurements

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