Answer to Question #126190 in Accounting for Zuwena Nassoro

Question

Cost object in manufacturing of orange juice

Answer 1

A cost object is a term used primarily in cost accounting 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.

Costs are allocated to the cost object and they are either direct or indirect costs.

In this case cost object is a territiry, where orange juice is produced.