Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?
A) The maintenance department.
B) Product no. 675.
C) Compton Corporation.
D) The Midwest division.
E) The telemarketing center.

Question

Quizplus · Accepted Answer

A cost object is anything for which a separate measurement of costs is desired. Compton Corporation as a whole cannot be a cost object for allocating its own corporate overhead, as it encompasses all other entities and activities within it, including the responsibility centers and products mentioned.

Compton Corporation, with Operations Throughout the Country, Will Soon Allocate