Question

Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Tutors Number of Students Percent of Faculty 10% 25 English Mathematics Science History Direct Costs $6,000 8,000 12,000 3,000 3 5 50 Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: Facility rent Custodial services Utilities Computer equipment amortization Advertising $2,500 1,800 600 800 400 Which of the following could be a cost object for Life Lessons? I. A student II. A subject area III. A cost pool I and II only II and III only I and III only O I, II, and III

Answer 1

The answer is I and II only

Cost object is the product or department to which costs can be traced

A student or a subject can be a cost object but not a cost pool