ACCA MA · Chapter 3 · Question 8 of 10
Which of the following would be the most appropriate cost unit for a hotel?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Occupied room-night
Explanation
A cost unit is a unit of product or service for which costs are worked out. For a hotel, the occupied room-night is a suitable measure of output. The housekeeping department is a cost centre, and the manager's salary is a cost, not a unit.
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