In accounting, the term cost unit is understood to be a collection point for the costs of a product, a service or a project.
Definition / explanation
In order to calculate the profitability of a product or service, the costs caused by the product must be known. In order to record the costs, a special type of calculation is used with cost unit accounting.
All costs that are incurred in connection with a product are posted to the corresponding cost unit. In simple terms, this means that a product is also a cost unit.
Product / service = cost unit
Cost units and cost centers
For accounting, the cost unit means that each cost unit also has its own cost center in the accounting system for issuing and posting invoices. In this way, a clear allocation of the costs incurred is regulated.