CA Inter P4 · Chapter 1 · Question 1 of 8
Which of the following is the most appropriate cost unit for a brick manufacturing unit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Per 1,000 bricks
Explanation
A cost unit is the unit of product or service in relation to which costs are ascertained. Bricks are cheap, homogeneous and produced in very large numbers, so costs are expressed per 1,000 bricks. Tonne-km relates to goods transport, kWh to electricity supply and patient-day to hospitals.
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