Any product, service, or organizational unit to which costs are assigned for some management purpose is a (n):
A)Cost object.
B)Direct cost.
C)Indirect cost.
D)Cost driver.
E)Allocation base.

Question

Quizplus · Accepted Answer

A cost object is any product, service or organizational unit to which costs are assigned for management purposes. This can include anything from individual products to entire divisions or even the entire organization. By determining the costs associated with each cost object, management can make informed decisions about pricing, resource allocation and other strategic choices.

Any Product, Service, or Organizational Unit to Which Costs Are