Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control. If the number of rows is equal to the number of seats in each row, then find the number of seats in each row. The reason for this is that with service industries, more than one thing affects the cost. Millions of real past notes, study guides, and exams matched directly to your classes.

Which one of the following can be described as the composite cost unit in cinema halls and why? Frequently, a composite cost unit may be deemed more appropriate. Let us consider baggage on an https://1investing.in/ airline, the weight of the baggage and the km travelled by the plane will affect how much fuel cost is needed. Therefore, the composite cost unit here will be $ per kilo per km travelled.