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prohojiy [21]
3 years ago
9

Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various respons

ibility centers. Which of the following is definitely not a cost object in this situation?
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
5 0

Complete question:

Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?

A) The maintenance department.  

B) Product no. 675.  

C) Compton Corporation.  

D) The Midwest division.  

E) The telemarketing center.

Answer:

Compton Corporation is definitely not a cost object in this situation

Explanation:

A cost object is a concept commonly used in financial reporting to describe the costs. Definitions commonly found in expense items include: product lines, geographical areas, clients, teams or anything else handling the costs.

Any object to which costs are independently calculated is a cost entity. In an organization, an expense item can be, for example a team, workmanship, production line or procedure.

For example, the costs of construction, customer support or revamping of a returned product may be tracked.

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