A Cost Object Is

question 84

Multiple Choice

A cost object is:

• A)a collection of costs to be assigned.
• B)a responsibility centre, product, or service to which cost is to be assigned.
• C)the tool used to charge cost dollars to user departments.
• D)the primary function of a responsibility accounting system.
• E)a common cost.

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Definitions:

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company.

Unrealized Intercompany Profits

Profits that arise when companies within the same group sell goods or services to each other at a profit, not realized until sold to an external party.

Equity Method

A financial accounting technique where an investment's value in the investor's books is influenced by the investee's profitability and other changes in their equity.

Redemption Premium

Additional amount above the par value paid to bondholders when a bond is redeemed before its maturity date.