Let us consider baggage on an 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. Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment in cinema halls composite cost unit is and control.

Suitable unit cost measures that may be used in different service/operation situations

• Let us consider baggage on an 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.
• The reason for this is that with service industries, more than one thing affects the cost.
• Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control.
• Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control.

The reason for this is that with service industries, more than one thing affects the cost.

• The reason for this is that with service industries, more than one thing affects the cost.
• Therefore, the composite cost unit here will be $ per kilo per km travelled.
• Another example can be hotels, for example, may use the ‘occupied bed-night’ as an appropriate unit for cost ascertainment and control.
• The reason for this is that with service industries, more than one thing affects the cost.