ECONOMICS

Detailed explanation-1: -A cost object is a term used primarily in cost accounting to describe something to which costs are assigned. Common examples of cost objects are: product lines, geographic territories, customers, departments or anything else for which management would like to quantify cost.

Detailed explanation-2: -A cost object is an item for which a cost is compiled. For example, this can be a product, product line, service, project, customer, distribution channel, or activity. Cost objects are used in activity-based costing analyses as the focal point of cost accumulations.

Detailed explanation-3: -Cost allocation is the process of identifying and assigning costs to the cost objects in your business, such as products, a project, or even an entire department or individual company branch.

Detailed explanation-4: -Assigning a cost enables profitability analysis and price setting. Operational: A cost object can be an area or function within a company, such as a department, tooling operation, production line, or process.

Detailed explanation-5: -Output cost objects are products and services offered by a company. Operational cost object are projects, departments, processes and other objects within a business.