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ABC Inc. has outsourced the task of holding its excess inventory to XYZ Inc. XYZ charges ABC based on the total weight of the extra inventory. In this example, what were ABC's cost object and cost driver?
a. The cost object was the excess inventory, and the cost drive was XYZ Inc.
b. The cost object was the total weight of ABC's excess inventory, and the cost driver was ABC's decision to outsource the holding service.
c. Both the cost object and the cost driver were the cost of holding the inventory.
d. The cost object was the cost ABC paid to hold the inventory, and the cost driver was the total weight of that inventory.
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