Which of the Following Items Could Be an Example of a Cost

question 153

Multiple Choice

Which of the following items could be an example of a cost object?

• A)A manufacturing plant
• B)An international plant
• C)The accounting department
• D)All of the above are examples of potential cost objects.

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Definitions:

Business Enterprise

An organization engaged in commercial, industrial, or professional activities with the aim of generating profit.

Proprietorships

A form of business organization owned by a single individual who is responsible for all its obligations.

Limited Liability

A legal structure that protects individual investors or business owners from being personally responsible for the debts and liabilities of the business beyond their investment.

Partnership Form

A legitimate business structure where two or more partners collaborate in managing the firm and splitting the profits.