The correct answer is: B. cost object and cost
Inflation is a general increase in prices and fall in the purchasing value of money. It affects the cost object and cost because the cost of goods and services increases over time. This means that the cost of producing a product or service will also increase. This can have a significant impact on businesses, as it can lead to higher prices for their products or services, which can reduce demand. It can also lead to lower profits, as businesses may not be able to pass on the full cost of inflation to their customers.
The cost driver is the factor that causes a change in the cost of a product or service. For example, the cost of labor is a cost driver, as the cost of labor will increase if there is inflation. The cost object is the item that is being costed. For example, the cost of a product is a cost object.
Heterogeneous costs are costs that are different from each other. For example, the cost of labor and the cost of materials are heterogeneous costs. Homogenous costs are costs that are the same. For example, the cost of labor for all employees is a homogenous cost.
Inflation can affect both heterogeneous and homogenous costs. For example, the cost of labor for all employees will increase if there is inflation. However, the impact of inflation on heterogeneous costs may be different from the impact of inflation on homogenous costs. For example, the cost of labor may increase more than the cost of materials, which could lead to a change in the cost structure of a business.