Annotation
The importance of cost accounting has risen due to this competitive environment. It is a significant aspect in the field of Commerce, Management and other important functional areas. An accounting information system (AIS) is the system of records a business keeps to maintain its accounting system. A cost unit refers to a unit of product, service or time in relation to which costs may be ascertained or expressed. In other words, cost unit is the unit of output for which cost is ascertained. For examples, the cost of air-conditioner is ascertained per unit. The selection of cost unit is important in cost accounting. It should be carefully selected to suit the nature of business operation. The selected unit should be neither too small nor too big, but ideal for cost ascertainment. Cost unit may be expressed in terms of number, weight, area, length etc. The following are the cost units in various industries. The knowledge and understanding of cost accounting is an integral part of learning the overall nature of accounting and is one of the varied aspects of accounting available for careers in this field.
