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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Cost object and cost centres
Please explain to me that the difference between cost object and cost centre
Thank you
A cost object (or unit) is whatever it is that you are trying to calculate the cost of. If you manufacture desks then one desk will be the cost unit.
A cost centre is an area where costs are incurred. So making desks might involve it spending time in the place where desks are assembled (which would be one cost centre) and then spending time in the place where the desks are painted (which would be a second cost centre).
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