Multiple choice

Directions: Choose the correct option and complete the sentence.

The smallest segment of an activity for which cost is ascertained is a

  1. cost unit

  2. cost centre

  3. profit centre

  4. work centre

  5. responsibility centre
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A cost unit is the basic unit of quantity (e.g., a ton of steel, a liter of milk) for which costs are ascertained.

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