Final answer:
In business, cost objects can be products, customers, or jobs. They are assigned only direct costs and may be assigned costs to help control spending.
Step-by-step explanation:
In business, cost objects can be products, customers, or jobs. They are assigned only direct costs, which are costs that can be specifically traced to a particular cost object. Cost objects may also be assigned costs to help control spending.
For example, if a company manufactures multiple products, each product can be a cost object. The manufacturing costs, such as materials and labor, directly associated with producing each product are direct costs assigned to each respective cost object.
By assigning costs to specific cost objects, businesses can track and analyze the expenses related to each object, helping them make informed decisions to control spending and improve profitability.