In: Accounting
Define cost objects and explain why managers of insurance companies might be interested in knowing the costs?
Cost object- Cost object can be a product or department for which cost is measured and assigned. This term is used in cost accounting. It is mainly of three types:
Managers of insurance companies might be interested in knowing the costs because different type of costs can change the premium of the policies if some policies incur higher costs then the premium will also be higher for the customers.