Question

whereas the lowermost level is termed as a
A broader level of cost is termed as
i.cost centre, cost unit
ii.cost factor, cost centre
iii.cost factor, cost unit
iv.cost unit, cost factor
a) cost centre, cost unit
b) cost unit, cost factor
c) cost factor, cost centre
d) cost factor, cost unit​

Answer 1

Explanation:

Among the various options given in question statement the correct option is A or the first one.

Cost centre is the broader level of cost, whereas cost unit can be used to define the lowermost level of cost.

Cost centre is related with the area or the department in the whole organization where a certain cost is incurred.Cost unit implies any measurable unit of product or service

Answer 2

The lowermost unit is the cost unit, while the broader one is a cost centre.

• A product or service, a project, a department, or any other operation to which a cost relates is referred to as a cost item.
• To be more accurate, the word cost should always be associated with a cost object.
• The cost object can be described in a variety of ways. A cost object can be referred to as a cost centre at a higher level, and as a cost unit at a lower level.