Question

What are the cost centres and cost units of accounting? Discuss in details the cost behavior pattern.

Answer 1

Answer:

An accountant needs to ascertain the cost of the cost object (i.e. product, service or activity) either by cost centre, cost unit or by both. Cost Center is nothing but just one portion of the entire organization, to which cost is charged. On the other hand, Cost unit refers to the unit in which cost is expressed.