MAC2601 Assignment 1 Semester 1 & 2 2021

1. 2 Reference: Study guide 1 PG 6 A cost object is any activity, unit or phenomenon for which cost can be accumulated and measured. The unit or activity may consist of a product unit, a batch of units, a job order, a contract or a project. It can also be a customer, geographical region, etcetera. In manufacturing organisations, the cost object will often be a product or products. To determine whether something is a cost object you need to ask the most fundamental question about cost: ''The cost of what?'' This will provide you with the answer. 2. 4 Reference: Study guide 1 PG 7 Manufacturing costs, also called factory costs or production costs, are the total of the costs incurred in the manufacturing or production process: direct material, direct labour, direct expenses and manufacturing overheads. 3. 2