A cost object is:
A)an item for which managers are trying to determine the cost.
B)an item to which managers must directly trace costs.
C)an item to which it is not worth the effort of tracing costs.
D)an item for sale by a business.

Question

Quizplus · Accepted Answer

A cost object is an item or activity for which managers want to determine the associated costs. It could be a product, a department, a service, or any other item. The goal is to understand the costs related to each cost object, so that managers can make better decisions about pricing, profitability, and resource allocation.

A Cost Object Is