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Cost Object
Any item for which cost is measured and assigned, including products, services, projects, departments, or activities.
Selling Expenses
Costs incurred directly and indirectly in selling a product, including advertising, sales staff salaries, and commissions.
Administrative Expenses
Costs related to the general operation of a business that are not directly tied to producing goods or services.
Period Costs
Expenses that are incurred regardless of the level of production, such as sales and administrative costs, and are directly expensed on the income statement.
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