Business and Personal Finance Dictionary

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• UNIT OF ACCOUNT
  
  One of the functions of of money in many (but not all) money systems: the unit by which value is accounted and thus compared. For instance: if pears are at $3 per pound, while apples are at $2 per pound, the common unit, in this case the $, allows an easy comparison of the prices or values of the two items. Within an individual money system, the unit of account may or may not be relevant: WIR, for example, uses the Swiss Franc as unit of account, but WIR as means of payment; while Time Dollars, by contrast, are both measured and exchanged as hours of service.
  
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