Cost Objective

A Cost Objective is a specific purpose for which cost estimates and cost accounting are made.

• AKA: Cost Object.
• Example(s)
  • Program.
  • Function.
  • Activity.
  • Grant.
  • Contract.
• Counter-example(s)
  • Intermediate Cost Objective.
• See: Cost Estimate, Cost Accounting, Activity-based Costing.

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References

2016

• CDER Library v1.5.1.
  • QUOTE: Cost objective means a program, function, activity, award, organizational subdivision, contract, or work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, capital projects, etc. A cost objective may be a major function of the non-Federal entity, a particular service or project, a Federal award, or an indirect (Facilities & Administrative (F&A)) cost activity, as described in Subpart E-Cost Principles of this Part. See also §§200.44 Final cost objective and 200.60 Intermediate cost objective.

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Cost_object
  • 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.

    The use of cost objects is common within activity based costing and Grenzplankostenrechnung systems.

• (Wikinary, 2016) ⇒ https://en.wiktionary.org/wiki/cost_objective
  • Cost Objective (accounting) - The purpose for which costs are measured.

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