Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the ﬁrm's various responsibility centers. Which of the following is deﬁnitely not a cost object in this situation?
A)The maintenance department.
B)Product no.675.
C)Compton Corporation.
D)The Midwest division.
E)The telemarketing center.

Question

Quizplus · Accepted Answer

Compton Corporation cannot be considered a cost object as it is the entire entity that is responsible for allocating overhead, not a specific department, product, or division within the corporation.

Compton Corporation, with Operations Throughout the Country, Will Soon Allocate