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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.
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Difference between cost unit and cost centre?
A cost unit refers to the actual products. The cost center refers to all the departments in a business organization.
What is the difference between overhead allocation with overhead apportionment?
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.
What is the difference between unit cost and unit price?
Unit Cost is what the manufacturer charges a dealer for the item. The Unit Price is what the dealer charges a customer.
Are variable cost are always indirect cost?
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.
What is the difference between sales price per unit and variable cost per unit?
contribution margin
Difference between cost unit and cost centre?
A cost unit refers to the actual products. The cost center refers to all the departments in a business organization.
What is the difference between cost centre and cost unit?
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)
What is the difference between unit cost and cost per unit?
nit cost is the average cost of making a product and cost per unit is the marginal cost
What is the difference between overhead allocation with overhead apportionment?
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.
What is the difference between unit cost and unit price?
Unit Cost is what the manufacturer charges a dealer for the item. The Unit Price is what the dealer charges a customer.
Are variable cost are always indirect cost?
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.
What is the difference between sales price per unit and variable cost per unit?
contribution margin
Example for cost unit and cost center?
if Edhi is cost centre than the cost unit for this organization will be the affected people who need the service.
The difference between sales price per unit and variable cost per unit is the?
The sales price includes variable cost, the cost of the unit and the markup. Sales price is the rate customers pay for the item.
What is the marginal cost of the 8th unit of output?
it is the difference between the total cost of producing 8 units and 7 units of output.
How would you define contribution margin?
The contribution margin is the difference between the per-unit variable cost and the selling price per unit.
What is the difference between overhead cost and fixed cost?
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.
