A Cost Object Is

question 13

Multiple Choice

A cost object is:

• A) a collection of costs to be assigned.
• B) a responsibility center, 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:

Finance Perspective

An approach or viewpoint emphasizing financial metrics and outcomes in decision-making processes or analysis.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without needing to increase financial leverage.

Assumptions

Premises or conditions accepted as true or certain without proof for the purpose of further analysis or argument.

Basic Assumptions

Fundamental beliefs or principles that underlie the financial accounting system, including economic entity, monetary unit, time period, and going concern.