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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Amount of manufacturing overhead costs allocated to individual jobs - products - or services based on the budgeted rate multiplied by the actual quantity used of the cost-allocation base
job-costing system
manufacturing overhead allocated
manufacturing overhead costs
proration
2. A product consumes a low level of resources but is reported to have a high cost per unit
product overcosting
work-in-process inventory
product-cost cross-subsidization
budgeted indirect-cost rate
3. A possible relevant occurrence in a decision model
event
breakeven point (BEP)
revenues
product-cost cross-subsidization
4. A variable - such as the level of activity or volume - that casually affects costs over a given time span
actual cost
cost driver
underapplied indirect costs
cost assignment
5. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
cost
conversion costs
probability distribution
net income
6. Include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in a economically feasible way
breakeven point (BEP)
sales mix
direct manufacturing labor costs
facility-sustaining costs
7. All manufacturing costs other than direct material costs
conversion costs
finished goods inventory
breakeven point (BEP)
direct material costs
8. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
overapplied indirect costs
actual costing
adjusted allocation-rate approach
product-cost cross-subsidization
9. Shows how changes in the quantity of units sold affect operating income
manufacturing-sector companies
output unit-level costs
PV graph
overapplied indirect costs
10. The costs of activities undertaken to support individual services
overapplied indirect costs
output unit-level costs
period costs
service-sustaining costs
11. Cost-allocation base when the cost object is a job - product - or customer
product costs
cost-application base
cost tracing
revenues
12. Costing system that reduces the use of broad averages for assigning the cost of resources to cost objects (jobs - products - services) and provides better measurement of the costs of indirect resources used by different cost objects- no matter how di
margin of safety
finished goods inventory
gross margin percentage
refined costing system
13. A what-if technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes
underallocated indirect costs
sensitivty analysis
contribution margin
finished goods inventory
14. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
work in progress
budgeted indirect-cost rate
direct manufacturing labor costs
budgeted cost
15. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
choice criterion
manufacturing overhead costs
cost accumulation
overtime premium
16. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
idle time
period costs
probability
manufacturing-sector companies
17. Examines the behavior of total revenues - total costs - and operating income as changes occur in the units sold - the selling price - the variable cost per unit - or the fixed costs of a product
actual cost
cost assignment
cost-volume-profit (CVP) analysis
cost-allocation base
18. Total revenues minus total variable costs
job-cost sheet
contribution margin
proration
overtime premium
19. Band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question
indirect manufacturing costs
operating income
work in progress
relevant range
20. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
direct costs of a cost object
breakeven point (BEP)
net income
contribution margin per unit
21. Cost that changes in total in proportion to changes in the related level of total activity or volume
revenue driver
prime costs
variable cost
expected monetary value
22. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
expected value
materials-requisition record
budgeted indirect-cost rate
product-sustaining costs
23. Cost computed by dividing total cost by the number of units
margin of safety
facility-sustaining costs
unit cost
probability
24. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
net income
fixed cost
PV graph
contribution income statement
25. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
contribution margin percentage
cost-allocation base
cost
direct materials inventory
26. A variable - such as volume - that casually affects revenues
underallocated indirect costs
activity
normal costing
revenue driver
27. An original record that supports journal entries in an accounting system
source document
output unit-level costs
actual costing
relevant range
28. Categorization of indirect costs into different cost pools on the basis of the different types of cost drivers - or cost-allocation bases - or different degrees of difficulty in determinig cause-and-effect (or benefits received) relationships
cost hierarchy
budgeted indirect-cost rate
process-costing system
product overcosting
29. All manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way.
indirect manufacturing costs
cost allocation
direct materials inventory
batch-level costs
30. All manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way.
manufacturing overhead costs
operating income
unit cost
service-sustaining costs
31. Assignment of indirect costs to a particular cost object
source document
materials-requisition record
contribution margin ratio
cost allocation
32. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
cost accumulation
cost
cost driver
indirect costs of a cost object
33. Predicted economic results of the various possible combinations of actions and events in a decision model
cost
sensitivty analysis
outcomes
work in progress
34. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
process-costing system
prime costs
probability
underapplied indirect costs
35. A unit or multiple units of a distinct product or service
direct materials inventory
job
revenues
contribution margin
36. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
cost-allocation base
actual cost
operating income
service-sector companies
37. Objective that can be quantified in a decision model
choice criterion
net income
direct manufacturing labor costs
sensitivty analysis
38. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
cost-application base
revenue driver
actual indirect-cost rate
cost tracing
39. A costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs and allocates the indirect costs based on the actual indirect-cost rates times the actual quantitie
proration
choice criterion
actual costing
manufacturing-sector companies
40. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
activity-based management (ABM)
product costs
inventoriable costs
batch-level costs
41. Quantities of various products or services that constitute total unit sales
indirect manufacturing costs
cost tracing
conversion costs
sales mix
42. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
actual cost
gross margin percentage
average cost
product-cost cross-subsidization
43. Likelihood or chance that an event will occur
period costs
facility-sustaining costs
outcomes
probability
44. Cost of goods brought to completion - whether they were started before or during the current accounting period
cost accumulation
expected value
cost of goods manufactured
cost-application base
45. All direct manufacturing costs
prime costs
merchandising-sector companies
operating income
activity-based costing (ABC)
46. Costing system in which the cost object is masses of identical or similar units of a product or service
process-costing system
materials-requisition record
underallocated indirect costs
service-sustaining costs
47. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
contribution income statement
materials-requisition record
activity-based costing (ABC)
PV graph
48. Goods partially worked on but not yet completed
work-in-process inventory
sales mix
manufacturing overhead applied
actual cost
49. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
revenues
cost
sales mix
operating leverage
50. Contribution margin divided by operating income at any given level of sales
cost
indirect costs of a cost object
degree of operating leverage
actual cost