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cost object

This topic has 5 replies, 3 voices, and was last updated 12 years ago by John Moffat.

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February 14, 2014 at 6:51 pm #158791
maan87
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hi john sir.
why a customer is not considered a cost object but a manger is considered? please guide me
February 14, 2014 at 10:36 pm #158817
John Moffat
Keymaster
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A customer can be considered as a cost object. I do not know where you read differently, but if it did read differently then it was wrong.
A cost object is simply something/someone that you measure the costs for. It is up to the particular business to decide what to measure the costs for – there is no rule – it could be the customer, it could be a manager, it could be a product, it could be a machine etc..
February 16, 2014 at 2:50 pm #158983
maan87
Member
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Thanx john sir i got it.
February 16, 2014 at 2:55 pm #158984
John Moffat
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You are welcome 🙂
March 24, 2014 at 2:02 pm #162933
mansoor
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what is the difference between a cost unit and a cost object?
March 24, 2014 at 2:55 pm #162935
John Moffat
Keymaster
- Topics: 57
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They are basically the same. A cost object is whatever it is that we are costing. A cost unit is a cost object but is more the situation when we are actually producing things. (A cost object could also be things like a customer.)
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