The correct answer is: Both A and B.
Cost accounting is a branch of accounting that tracks and analyzes costs. It is used to help businesses make decisions about pricing, production, and other areas. Cost accounting records both monetary and physical units. Monetary units are used to track the cost of materials, labor, and other expenses. Physical units are used to track the quantity of goods produced or services provided.
Option A: Physical units are used to track the quantity of goods produced or services provided. For example, a company that produces widgets might track the number of widgets produced each day. A company that provides services might track the number of hours of service provided each day.
Option B: Monetary units are used to track the cost of materials, labor, and other expenses. For example, a company that produces widgets might track the cost of the materials used to make the widgets, the cost of the labor to produce the widgets, and the cost of other expenses, such as rent and utilities. A company that provides services might track the cost of the labor to provide the services, the cost of the materials used to provide the services, and the cost of other expenses, such as rent and utilities.
Option C: Both A and B are correct. Cost accounting records both monetary and physical units.