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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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

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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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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.

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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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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.