Introduction to Object Costing and its Benefits

Object costing involves identifying specific activities or assets and compiling related costs for allocation. It is widely used in activity-based costing (ABC) to allocate costs to production processes. Various types of object costing include output-related, operational, and business relationship costs. This method aids in effective cost management, budgeting, and pricing decisions.

Why is object costing beneficial for management decision making?

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Explain how object costing can assist in budgeting and pricing.

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