Which of the following could be cost objects?
I. A product
II. An activity
III. A department
IV. A specialised item of equipment
A) II, III and IV only.
B) I, II, and IV only.
C) I, II, III and IV.
D) I and II only.

Question

Which of the following could be cost objects?
I. A product
II. An activity
III. A department
IV. A specialised item of equipment
A) II, III and IV only.
B) I, II, and IV only. 
C) I, II, III and IV.
D) I and II only.

Quizplus · Accepted Answer

All four options can be cost objects. A product is an obvious cost object as the cost of producing it can be tracked. An activity can also be a cost object, as it refers to a process that incurs costs, such as marketing or research and development. Similarly, a department can be a cost object, such as the production department or the marketing department. Finally, a specialised item of equipment can be a cost object, as its maintenance and repair costs can be tracked separately. Therefore, all options are valid cost objects.

Which of the Following Could Be Cost Objects