Any item for which a separate measurement of cost is desired is known as:
A)a cost object.
B)an indirect cost.
C)cost allocation.
D)a direct cost.

Question

Quizplus · Accepted Answer

A cost object is any item for which a separate measurement of cost is desired. This can include products, services, projects, and departments. By identifying cost objects, a company can better understand the cost drivers for each item and make more informed decisions about resource allocation and pricing.

Option B is incorrect because indirect costs are costs that cannot be traced back to a specific cost object, such as rent or utilities.

Option C is incorrect because cost allocation is the process of assigning indirect costs to cost objects.

Option D is incorrect because direct costs are costs that can be specifically traced to a cost object, such as raw materials or labor.

Any Item for Which a Separate Measurement of Cost Is