Cost object

A cost object is a term used primarily in cost accounting to describe something to which costs are assigned.[1] Common examples of cost objects are product lines, geographic territories, customers, departments or anything else for which management would like to quantify cost.[2]

The use of cost objects is common within activity based costing and Grenzplankostenrechnung systems.

See also

References
  1. "Cost object definition". AccountingTools. 1 November 2023. Retrieved 1 February 2024.
  2. Averkamp, Harold. "Cost object definition". AccountingCoach. Retrieved 1 February 2024.


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