Cost Object

1. A cost object is the object of the assignment of a cost. Although a product is the object that many people think of first, a cost object can be customers, strategic business units (SBUs), services, etc. See also cost driver and strategic business unit. A function, organizational subdivision, contract, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, capitalized projects, etc.