Meaning of cost object
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What is the meaning of the term "cost object"? Give an example of a cost object that would be used in a manufacturing company, a merchandising company and a service sector company.
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The answer contains the meaning of cost object and the cost object of manufacturing, service and merchandising industry.
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A cost object is a tangible input for a product manufactured/Service provided, like labor or material, i.e., anything for which cost data are desired. Examples of possible cost objects are products, product lines, customers, jobs, and organizational subunits such as departments or divisions of a company. ...
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