Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 48

A cost object is the product, service, or company department where you incur costs. Picture the cost object as a sponge that sucks up money. A cost driver is an item that changes costs. If the cost object is a sponge full of costs, the cost driver changes the size of the sponge.

If you manufacture leather baseball gloves, leather material is a cost driver. If you manage the human resources department, an increase in job interviews is a cost driver. More interviews require more time from your staff, and that labor time has a cost.

This section covers two related concepts: relevant range and inventoriable costs.