Which of the following is least likely to be a cost object for a car manufacturer:
A) Human Resources Department
B) Assembly Division
C) Gordon Lee - a part time employee in the cafeteria.
D) Charlie's Car Company - a long term customer.

Question

Quizplus · Accepted Answer

A cost object is anything for which a separate measurement of costs is desired. It can be a product, a department, a project, etc. Human Resources Department (A) and Assembly Division (B) are typical cost objects in manufacturing as costs are often allocated to these units. Charlie's Car Company (D), being a customer, could also be considered a cost object if the manufacturer tracks costs or revenues associated with specific customers. However, an individual part-time employee like Gordon Lee (C) in the cafeteria is less likely to be a cost object because costs are not typically tracked at the individual employee level for operational or financial analysis purposes.

Which of the Following Is Least Likely to Be a Cost