A cost object in a process cost system is usually a:
A)Department.
B)Job.
C)Specific product.
D)Employee.

Question

Quizplus · Accepted Answer

In a process cost system, costs are accumulated by department or process, not by individual products or jobs. Therefore, the cost object is usually a department or process that incurs the costs. Option B (Job) would be a more relevant cost object in a job costing system, which accumulates costs by individual jobs or products. Option C (Specific product) is not correct because process costing is used when a company produces large quantities of similar products, so it wouldn't make sense to assign costs to a specific product. Option D (Employee) is not correct because employees are not typically cost objects in process costing systems; their wages would be considered indirect labor and would be allocated to the appropriate department or process.

A Cost Object in a Process Cost System Is Usually