A cost unit refers to the actual products. The cost center refers to all the departments in a business organization.
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
Unit Cost is what the manufacturer charges a dealer for the item. The Unit Price is what the dealer charges a customer.
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
contribution margin
if Edhi is cost centre than the cost unit for this organization will be the affected people who need the service.
cost centre is a production or service location, function, activity or item of equipment for which costs are accumulated(i.e stores,canteen, farm, personnel) cost unit is a unit of product or service in relation to which costs are ascertained(i.e typewriter,thousand of washers)
The following are the differences between allocation and apportionment. 1. Allocation costs are directly allocated to cost centre. Overhead which cannot be directly allocated are apportioned on some suitable basis. 2. Allocation allots whole amount of cost to cost centre or cost unit where as apportionment allots part of cost to cost centre or cost unit. 3. No basis required for allocation. Apportionment is made on the basis of area, assets value, number of workers etc.
nit cost is the average cost of making a product and cost per unit is the marginal cost
Unit Cost is what the manufacturer charges a dealer for the item. The Unit Price is what the dealer charges a customer.
No. Variable cost is the same as direct cost because it can be varied directly to the cost centre or cost unit,while indirect cost can't be varied directly to it cost centre or cost unit.
contribution margin
if Edhi is cost centre than the cost unit for this organization will be the affected people who need the service.
The sales price includes variable cost, the cost of the unit and the markup. Sales price is the rate customers pay for the item.
it is the difference between the total cost of producing 8 units and 7 units of output.
The contribution margin is the difference between the per-unit variable cost and the selling price per unit.
Fixed cost is a cost that does not typically vary on unit production. On the other hand overhead cost is the summation of all variable cost.
Cost centres are the smallest segment of activity or area of responsibility for which costs are accumulated or ascertained. I.C.M.A., England defines cost centre are the 'allocation, person or item of equipment for which cost may be ascertained and used for the purpose of cost control'. Cost centres are the natural division of the organisation in to convenient units for the purpose of cost ascertainment and control. These are the department of the organisation, but sometimes a department may also contain several cost centres.Cost units is device for the purpose of breaking up cost in to smaller sub-divisions. I.C.M.A., England defines, cost unit is 'a unit of quantity of product, service, or time in relation to which cost may be ascertained or expressed'. Ordinarily cost unit is the expression in the form of count, weight, dimension etc. Cost unit is the unit of measurement of different types of products. For example, ton in case or coal, Yards in case of cloth, Liter in case of petrol etc.