A cost object is a term used primarily in
cost accounting
Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, al ...
to describe something to which
costs are assigned. Common examples of cost objects are: product lines, geographic territories, customers, departments or anything else for which management would like to quantify cost.
Cost object is anything for which a separate measurement of cost is required. Cost object may be a product, a service, a project, etc.
The use of cost objects is common within
activity based costing and
Grenzplankostenrechnung systems.
See also
Cost centre (business)
References
Costs
Management accounting
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