ACCA MA Syllabus A. Management Information - Cost objects, cost units and cost centres - Notes ^{7 / 9}

A cost object is any activity for which a separate measurement of cost is undertaken.

E.g. cost of a product, cost of a service, cost of a particular department.

A cost unit is a unit of product or service in relation to which costs are ascertained.

E.g. a hotel room, a course, one litre of paint.

A cost center is a production or service location, function, activity or item of equipment for which costs can be ascertained.

E.g. a department, a project, a machine.

A cost card lists out all the costs involved in making one unit of a product