cost object


The direct or indirect cost of a component of total output allocated to the total cost of producing goods or services. The cost of an individual resource or output applied to the total cost structure of production for measuring cost efficiency and profitability.

Use cost object in a sentence

I thought the cost object might be too high and if that was the case things would not work out for us like we hoped.

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Many firms seek to control risk by hedging the price of various cost objects crucial to their production technologies, such as fuel, lumber, or even coffee.

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The cost of fertilizer, water, land and labor all go into what is considered the cost object for fruits and vegetables on the open market, therefore at times depending on the price of the items a farmer paid for fertilizer, water, land, and labor would impact his crops overall profitability.

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cost method cost of capital