Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included: Facility rent $2,500
Custodial services 1,800
Utilities 600
Computer equipment depreciation 800
Advertising 400
Which of the following could be a cost object for Tutors-R-Us?
I A student
II A subject area
III A cost pool
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data  Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included: Facility rent $2,500
Custodial services 1,800
Utilities 600
Computer equipment depreciation 800
Advertising 400
Which of the following could be a cost object for Tutors-R-Us?
I A student
II A subject area
III A cost pool
A) I and II only 
B) II and III only 
C) I and III only 
D) I, II, and III

Quizplus · Accepted Answer

A student (option I) and a subject area (option II) can both be considered cost objects for Tutors-R-Us. A cost pool (option III) is a grouping of costs, not a cost object itself.

Tutors-R-Us Provides Academic Enrichment and Review Activities for High School