Define cost object and give three examples.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:43

Students have asked these similar questions

Smith Enterprises started the year with total assets of $300,000 and total liabilities of $120,000. During the year, the business recorded $250,000 in revenues, $140,000 in expenses, and dividends of $50,000. Stockholders' equity at the end of the year was: A. $240,000 B. $180,000 C. $200,000 D. $130,000

Deltacorp Manufacturing is developing direct labor standards. The basic direct labor wage rate is $12.50 per hour. Employment taxes are 8% of the basic wage rate. Fringe benefits are $3.80 per direct labor hour. The standard rate per direct labor-hour should be: a. $6.75 b. $5.80 c. $12.50 d. $17.30

answer ?? General accounting question

Answer 2

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:43

Answer 3

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:43

Answer 4

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:43

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Answer 8

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer 12

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Answer 13

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.