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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.

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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.

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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HeathElite · Tutor for 8 years

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d) 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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## Step 1:<br />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.<br /><br />## Step 2:<br />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:<br /><br />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.<br /><br />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.<br /><br />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.<br /><br />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.<br /><br />## Step 3:<br />Between our options, only choice "d" correctly addressed and defines a cost object according to basic cost accounting principles.<br /><br />### The formula used to determine the correct definition was:<br />### Predetermined definition = Each answer choice terms<br />An answer choice was correct if the definitions matched, incorrect otherwise.
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