Cost Unit is defined as:

Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control
Centres having the responsibility of generating and maximising profits
Centres concerned with earning an adequate return on investment

The correct answer is: A. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed.

A cost unit is a unit of measurement used to assign costs to products, services, or activities. It can be a physical unit, such as a pound of product or a labor hour, or it can be a time period, such as a month or a year. The cost unit is used to calculate the cost per unit of output or the cost per unit of time.

Option B is incorrect because a cost center is a location, person, or item of equipment or a group of these for which costs are ascertained and used for cost control.

Option C is incorrect because a profit center is a centre having the responsibility of generating and maximising profits.

Option D is incorrect because a return on investment (ROI) center is a centre concerned with earning an adequate return on investment.

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