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Chapter 10
Cost units
Service organisations may use several different cost units to measure the different
kinds of service that they are providing.
A composite cost unit is more appropriate if a service is a function of two variables.
The calculation of a cost per service unit is as follows:
Cost per service unit = Total costs for providing the service ÷ Number of service units
used to provide the service
Illustrations and further practice
Now try TYU question 2 from Chapter 10
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