Question

Write short note on : Cost Units used in Operating Costing.​

Answer 1

Answer:

Operating Costing is a method of ascertaining the costs of providing or operating a service.

Explanation:

Service Name       Cost Unit

1. Passenger-transport service    Passenger kilometer

2. Goods transport service       Ton kilometer

3. Electricity supply                        Kilowatt-hour

4. Canteen service            Man-meal

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Answer 2

Answer:

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Operating Costing: Definition, Classification of Operating Cost

what is operating costingOperating Costing is a method of ascertaining the costs of providing or operating a service. This method of costing is applied by those undertakings which provide services rather than the production of goods.

Such undertakings, for example, are; Transport concerns, Gas agencies; Electricity suppliers; Hospitals; Theatres, etc.

Because of the varied nature of activities carried out by the service undertakings, the cost system used is different from that followed in manufacturing concerns.

Explanation:

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