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CA Inter P4 · Chapter 11 · Question 4 of 8

Which of the following is the appropriate cost unit for an electricity supply undertaking?

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Reveal answer & explanation

Correct answer: C) Kilowatt-hour

Explanation

Electricity is generated and supplied in kilowatt-hours (kWh), so the cost per kWh is the relevant measure. Room-day is used in hotels and cubic metre in earthmoving or construction-type services.

All 8 questions in Chapter 11Service Costing MCQs with answers

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