Cost Object - Definition

Any product, service, customer, contract, project, Process or other work Unit for which a separate cost measurement is desired. For example a cloth manufacturing firm requires some Amount of predetermined Labor and predetermined raw material for any amount of cloth being manufactured. The cost of employing labor can be directly fixed as "per man per hour" or "per man per day per hour per minute per annum", so the labor is a cost object as you can directly associate cost with it. It may be necessary to have a cost object in Order to derive pricing from a baseline cost, or to see if costs are reasonable, or to derive the full cost of a relationship with another entity.

Terms near "Cost Object"

Cost Object Driver
Cost Pool
Counter currency
Country Risk
Cover on a bounce
Cover on Approach
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