What Is a Cost Object?
The cost object is the object that the enterprise needs to measure the cost. According to the needs of the enterprise, each production batch can be used as a cost object, or a variety can be used as a cost object. [1]
Cost object
Right!
- Chinese name
- Cost object
- Definition
- An activity where costs are measured separately
- Classification
- Intermediate and final cost objects
- Can be defined
- One product, one service, one design, etc.
- The cost object is the object that the enterprise needs to measure the cost. According to the needs of the enterprise, each production batch can be used as a cost object, or a variety can be used as a cost object. [1]
- The cost accounting object refers to the content of cost accounting calculation and supervision. The objects of cost accounting are summarized as follows: production and operation business costs and period expenses incurred during the production and operation of an enterprise. Cost accounting is actually cost and expense accounting. Cost accounting mainly studies the cost incurred by the material production department to manufacture the product, that is, the production cost of the product, so the content of cost accounting and supervision also mainly refers to the production cost of the product.
- Cost objects can be divided into intermediate cost objects and final cost objects. The final cost object refers to the cost collection point where the accumulated cost cannot be further allocated. The final cost calculation object is usually a product or a service, which is the final output of the enterprise. The intermediate cost object refers to the cost collection point where the accumulated cost should be further allocated, sometimes called the cost center. Cost centers are identifiable departments associated with costs in an enterprise. They are a collection point for costs before common costs are further allocated to cost objects based on an allocation basis, such as machining workshops, maintenance workshops, and regional sales departments. Wait. How many intermediate objects are set and the relationships between intermediate objects depend on the characteristics of the production organization and management requirements.