BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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products
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customers
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departments
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All of these answers are correct
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Detailed explanation-1: -Typical cost objects include products, projects, resources, departments, cost centers, and geographical regions. Management uses cost objects to quantify costs and also to drive profitability analysis.
Detailed explanation-2: -The three types of cost objects are output-related, operational, and business relationship-based.
Detailed explanation-3: -Common examples of cost objects are: product lines, geographic territories, customers, departments or anything else for which management would like to quantify cost. Cost object is anything for which a separate measurement of cost is required. Cost object may be a product, a service, a project, etc.
Detailed explanation-4: -The objective of the cost accounting is to determine the methods by which expenditure on materials, wages and overhead are recorded, classified and allocated. This is necessary so that the. cost of products and services may be accurately ascertained.