A cost unit is ________.

A. the cost per machine hour

B. the cost per labour hour

C. a unit of production or service in relation to which costs are ascertained

D. a measure of work output in a standard hour

Answer: Option C

Solution(By Examveda Team)

A cost unit is a unit of production or service in relation to which costs are ascertained. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.