In cost accounting, what is a cost object?
Correct answer: C. A unit for which cost is measured
- A. A rule for valuing closing stock
- B. A report prepared for shareholders
- C. A unit for which cost is measured
- D. A method for recording cash payments
Explanation
A cost object is anything for which a separate cost is required, such as a product, service, job, department or customer. A financial report or cash record may use cost information, but it is not itself a cost object.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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