A Cost Object Is Anything for Which Management Desires a Separate

question 107

True/False

A cost object is anything for which management desires a separate tracking of costs,while a cost driver is the factor that causes the cost object to increase or decrease.

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Definitions:

Liquidated Damages

Pre-determined damages specified in a contract that the parties agree on as compensation if one party breaches the contract.

Option To Terminate

A provision in a contract that allows one or more parties to end the agreement under certain conditions, before the completion date.

Force Majeure

A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.

Frustrated Contracts Act

Legislation that deals with contracts that, through no fault of either party, cannot be fulfilled due to unforeseen events.