OBJECT COST Meaning and
Definition
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Object cost refers to the financial value assigned to an item or asset used in the production or delivery of goods or services. It represents the monetary expense incurred by a business entity to acquire or produce a specific object, which could be a tangible item such as raw materials, machinery, or inventory, or an intangible asset such as patents or copyrights.
Object cost is an important aspect of cost accounting and financial analysis as it helps in assessing the overall expenses involved in the production process, determining the profitability of products or services, and making informed decisions related to pricing, resource allocation, and future investments. It encompasses direct costs, which can be directly attributed to a specific object, such as the purchase cost of materials, labor cost, and equipment depreciation. Additionally, indirect costs, which are not directly traceable to a single object but are incurred for the overall production, are also considered under object cost. These can include rent, utilities, and administrative expenses.
Understanding object cost is crucial for businesses to effectively manage their financial resources, control costs, and evaluate the efficiency of their operations. It enables organizations to accurately determine the cost of production, calculate profit margins, and identify areas for cost reduction or process improvement. By analyzing object costs, businesses can enhance their competitiveness, ensure the delivery of quality products or services, and achieve financial stability and growth.
Common Misspellings for OBJECT COST
- ibject cost
- kbject cost
- lbject cost
- pbject cost
- 0bject cost
- 9bject cost
- ovject cost
- onject cost
- ohject cost
- ogject cost
- obhect cost
- obnect cost
- obmect cost
- obkect cost
- obiect cost
- obuect cost
- objwct cost
- objsct cost
- objdct cost
- objrct cost
Etymology of OBJECT COST
The word "object" comes from the Latin word "objectus", which is the past participle of the verb "objicere". "Objicere" is derived from "ob-" (meaning "against" or "towards") and "jacere" (meaning "to throw"). Thus, the term "object" originally referred to something thrown against or towards someone. Over time, its meaning evolved to denote a physical thing, a thing of thought, or a goal.
The word "cost" comes from the Old French word "coste" or "coute", which means "rib" or "side". This later evolved into "coste" or "costa" in Middle English, referring to the side or rib of an animal. In the late 15th century, "cost" began to be used metaphorically to represent the expenses or the price of something.
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