Question

Name any one service unit used in canteen services under canteen costing.

Hint:

In canteen costing, cost per meal is the standard service unit.

Answer 1

In canteen costing, the aim is to calculate the cost of providing food and related services to employees or customers.
To find the cost per service unit, an appropriate unit must be selected which represents the output of the canteen.
One common service unit used is the meal served because each meal represents one complete service provided.
Sometimes other units like ‘per plate’ or ‘per lunch’ or ‘per dinner’ may also be used, depending on how the canteen operates.
Calculating cost per meal helps in controlling canteen expenses and setting reasonable rates.