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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost object
Which of the following is not a cost object?
A. Cost centre
B. A customer
C. A manager
D. A product
Ans. C
Why the manager cannot be considered a cost object? Also I was wondering how is the customer taken to be a cost object?
Thank you so much.
The cost object is something you calculate the cost for. The manager’s cost is just one part of the total cost for the cost centre or the product or what is supplied to the customer if a service industry.
Thank you for the reply . Sir, I still didn’t get why the customer is taken as a cost object.
Oh I think I got it. Customer becomes a cost object when it’s a service industry.
I’m sorry for the trouble.
Thank you so much Sir once again.
No problem, and you are welcome 🙂