Question 20 (4 points) Choose the correct definition of a cost object. A cost object is a cost incurred (historical or past cost), as distinguished from a budgeted cost, which is a predicted or forecasted cost (a future cost). Examples include materials, labor, and overhead A cost object is a resource sacrificed or forgone to achieve a specific objective. Examples include direct materials, direct labor, and advertising. None of the above. A cost object is anything for which a separate measurement of costs is desired. Examples include a product a service, and a customer.

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Question 20 (4 points) Choose the correct definition of a cost object. A cost object is a cost incurred (historical or past cost), as distinguished from a budgeted cost, which is a predicted or forecasted cost (a future cost). Examples include materials, labor, and overhead A cost object is a resource sacrificed or forgone to achieve a specific objective. Examples include direct materials, direct labor, and advertising. None of the above. A cost object is anything for which a separate measurement of costs is desired. Examples include a product a service, and a customer.

Answer 1

d) A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, and a customer.

Answer 2

## Step 1:First, let's understand what a cost object is. In cost accounting, a cost object is anything for which cost data is being separately collected and evaluated. This could include various items or activities within a business, such as a product, service or customer. It is the item to which costs are assigned.## Step 2:Now, we examine each answer choice, compare it to our own definition of a cost object and determine if any of them accurately match it:a) By treating a cost object as expired or historical costs as opposed to projected, future costs. This does not appropriately capture the definition of cost objects. A cost object could very well have forecasted or future costs associated with it.b) Similarly, characterizing a cost object as a resource sacrificed or forgone doesn’t fully mirror the definition of a cost object. A cost object is not about the sacrifice of resources but rather for what specifically those resources are being used.c) "None of the above" indicates that none of the options provided accurately define a cost object. We'll pass on this choice for the time being until we’ve evaluated all choices.d) Defining a cost object as something for which a separate dimensions of costs is needed. Example include a product, a service, or a customer. This falls in line with our definition of a cost object.## Step 3:Between our options, only choice "d" correctly addressed and defines a cost object according to basic cost accounting principles.### The formula used to determine the correct definition was:### Predetermined definition = Each answer choice termsAn answer choice was correct if the definitions matched, incorrect otherwise.

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