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cost object

UUsman12y ago
hi john sir. why a customer is not considered a cost object but a manger is considered? please guide me
John MoffatJohn MoffatTutor12y ago#1
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..
UUsman12y ago#2
Thanx john sir i got it.
John MoffatJohn MoffatTutor12y ago#3
You are welcome :-)
Mmansoor12y ago#4
what is the difference between a cost unit and a cost object?
John MoffatJohn MoffatTutor12y ago#5
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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