Essential to the effective operation of any Cost and Management Accounting system in any business is the ability to define the cost units and cost centres.
You are required to:
a) Explain the term "cost unit" and illustrate your answer by reference to any businesses that you are familiar with.
b) Explain the term "cost centre" and describe how a company will use cost centres in a management accounting system.
c) Outline and explain the various works of the management accountant in a typical manufacturing company.