The Cost Object Is

question 33

Multiple Choice

The cost object is:

• A)the cost incurred.
• B)a collection of cost data in some organized way by means of a cost object.
• C)a predicted,or forecasted,cost.
• D)anything for which a measurement of costs is desired.
• E)used to describe the assignment of indirect costs to a particular cost object.

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Definitions:

Substitution Effect

The change in consumption resulting from a change in the relative prices of goods, leading consumers to substitute one good for another.

Relative Price

The price of one good or service compared to another, usually expressed as a ratio or quotient.

Substitution Effect

The change in consumption patterns due to a shift in the relative prices of goods, leading consumers to substitute one good for another.

Input Price

The cost of resources (labor, materials, etc.) used in the production of goods or services.