Anything for which managers want a separate measurement of cost is called a ________.
A) responsibility center
B) cost object
C) profit object
D) conversion cost

Question

Quizplus · Accepted Answer

A cost object is anything for which managers want a separate measurement of cost, such as a product, service, department, or customer. Responsibility centers are organizational units for which managers are held accountable, such as cost centers, profit centers, and investment centers. Profit object is not a commonly used term in managerial accounting. Conversion cost refers to the combination of direct labor and manufacturing overhead costs needed to convert raw materials into a finished product.

Anything for Which Managers Want a Separate Measurement of Cost