Cost unit time accounting

Definition of cost unit time accounting

Cost unit time accounting records the company's costs and revenues that have accrued during a certain period of time. It is also called profitability analysis. Types of cost unit time accounting are according to their different cost breakdowns:

• Total cost method
• Expense of sales method

Cost unit time accounting for calculating performance-related success

With the help of cost unit time accounting, the company's performance-related success - as profit or loss - is determined by:

• The prime costs incurred in a billing period are divided among the product groups of a company
• The sales revenues per product group are compared.

Tasks of cost unit time accounting

• Determination of the cost of a billing period
• Determination of the share of product groups in total costs and overall result
• Coordination with the accounting department
• Control of the profitability of the product groups
• Initiation of cost-cutting measures
• Implementation of the short-term income statement