Define cost object and give three examples.

Question

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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.

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01:43

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Selected comparative financial statements of Korbin Company follow. Sales KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 512,008 $ 392,240 2019 $ 272,200 Cost of goods sold 308,229 245,542 174,208 Gross profit 203,779 146,698 97,992 Selling expenses 72,705 54,129 35,930 Administrative expenses 46,081 34,517 22,593 Total expenses 118,786 88,646 58,523 Income before taxes .84,993 58,052 39,469 Income tax expense 15,809 11,901 8,012 Net income $ 69,184 $ 46,151 $ 31,457 KORBIN COMPANY Comparative Balance Sheets Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings December 31 2021 2020 2019 $ 54,370 0 $ 36,390 600 $ 48,645 3,870 99,436 90,776 53,339 Total liabilities and equity $ 153,806 $ 127,766 $ 105,854 $ 22,456 $ 19,037 $ 18,524 68,000 68,000 50,000 8,500 8,500 5,556 54,850 32,229 31,774 $ 153,806 $ 127,766 $ 105,854

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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.

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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.

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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.

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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.