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Cost object

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost object

  • This topic has 4 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • March 6, 2020 at 2:32 pm #564571
    sayedaamal
    Participant
    • Topics: 24
    • Replies: 32
    • ☆☆

    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.

    March 6, 2020 at 3:47 pm #564609
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54670
    • ☆☆☆☆☆

    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.

    March 7, 2020 at 11:46 am #564787
    sayedaamal
    Participant
    • Topics: 24
    • Replies: 32
    • ☆☆

    Thank you for the reply . Sir, I still didn’t get why the customer is taken as a cost object.

    March 7, 2020 at 5:05 pm #564816
    sayedaamal
    Participant
    • Topics: 24
    • Replies: 32
    • ☆☆

    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.

    March 8, 2020 at 6:32 am #564862
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54670
    • ☆☆☆☆☆

    No problem, and you are welcome 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘Cost object’ is closed to new replies.

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