Cost Accounting Concepts
Question
A company has recently deployed Microsoft Dynamics 365 Finance.You have been hired as a Functional Consultant.
Your role will include the management of the Dynamics 365 Finance system and to provide training for members of the Accounts team.
You are providing training on the cost accounting module in the Dynamics 365 Finance system.
Products, projects, departments, cost center are example of which of the following?
Answers
Explanations
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A. B. C. D.B.
In cost accounting, a cost object is something for which we are measuring the costs. In this case, products, projects, departments, and cost centers are all examples of cost objects.
Cost elements refer to the individual costs that make up a product, service, or activity. They are the smallest unit of measure in cost accounting and are used to calculate the total cost of a product or service.
Cost classifications are used to categorize costs for management purposes. Examples of cost classifications include direct costs, indirect costs, fixed costs, and variable costs.
Cost distribution refers to the process of allocating costs to cost objects. This process involves dividing the total cost of a product or service among the various cost objects that contributed to its production.
Therefore, products, projects, departments, and cost centers are all examples of cost objects. The correct answer is B. Cost objects.
