CMA Final · Cost and Management Audit · Audit of Different Service Organisations
In the audit of an educational institution treated as a service organisation, which cost unit is most commonly used to ascertain the cost of providing a course?
Cost per student per year is the commonly used cost unit for educational institutions, because the service delivered is education to students. Buildings, teachers hired and library books are inputs or resources rather than measures of output.
- ACost per student per yearCorrect
- BCost per building
- CCost per teacher hired
- DCost per book in the library
Explanation
Educational institutions measure service output by students enrolled, typically cost per student per year or course. Buildings, teachers hired or library books are inputs, not the output unit.
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