Question

Which of the following is an example of money as a unit of account?
a. purchasing a remote-controlled toy on sale for $8.99
b. lending your best friend $25.00 to buy a guitar
c. opening a savings account at a bank that pays high interest
d. comparing camera prices at different store before buying one

Answer 1

The answer is lending your bestfriend 25 dollars to buy a guitar.
Unit of costs is the amount incurred by a particular company to be able to produce, store and sell the number of the same products. In the given example. 25 dollars is the cost of the guitar or the unit of costs.