A cost objective is the product, service, or department that will receive the allocated cost.

Question

Quizplus · Accepted Answer

A cost objective is a specific product, service, or department that will bear the allocated cost. This is a fundamental concept in cost accounting, as it helps managers track costs and allocate resources effectively. By assigning costs to specific objectives, managers can better understand where money is being spent and how it is impacting the business.

A Cost Objective Is the Product, Service, or Department That