The 195 Factory produces replacement parts and assemblies for vintage Cessna aircraft. Fred Weems has ordered a new rudder assembly for his Cessna 190. The 195 Factory needs to develop an estimate of its cost to produce the assembly so that it can quote a sales price to Weems. The rudder assembly may be considered by the 195 Factory as a:
A) Cost pool
B) Cost object
C) Cost driver
D) Resource driver

Question

Quizplus · Accepted Answer

The rudder assembly is considered a cost object because it is a product or service for which the company wants to separately measure costs.

The 195 Factory Produces Replacement Parts and Assemblies for Vintage