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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • 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. Cost that changes in total in proportion to changes in the related level of total activity or volume






2. 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.






3. 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






4. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin






5. Goods partially worked on but not yet completed






6. The costs of activities undertaken to support individual services






7. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department






8. The costs of activities performed on each individual unit of a product or service






9. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like






10. 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






11. 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






12. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way






13. 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






14. Cost-allocation base when the cost object is a job - product - or customer






15. Selling price minus the variable cost per unit






16. Anything for which a measurement of costs is desired






17. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced






18. An event - task - or unit of work with a specified purpose






19. Objective that can be quantified in a decision model






20. A unit or multiple units of a distinct product or service






21. Resource sacrificed or forgone to achieve a specific objective






22. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






23. Goods partially worked on but not yet completed






24. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way






25. Companies that purchase materials and components and convert them into various finished goods






26. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins






27. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






28. Acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods) - and that can be traced to the costt object in an economically feasible way






29. Quantities of various products or services that constitute total unit sales






30. A variable - such as volume - that casually affects revenues






31. Summary of alternative actions - events - outcomes - probabilities of events in a decision model






32. Goods completed - but not yet sold






33. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.






34. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability






35. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job






36. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost






37. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool






38. Predicted economic results of the various possible combinations of actions and events in a decision model






39. A variable - such as the level of activity or volume - that casually affects costs over a given time span






40. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates






41. Companies that provide services or intangible products to their customers






42. 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






43. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume






44. Amount by which budgeted (or actual) revenues exceed breakeven revenues






45. Contribution margin per unit divided by selling price






46. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur






47. Costing system in which the cost object is masses of identical or similar units of a product or service






48. Collection of cost data in some organized way by means of an accounting system






49. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.






50. Companies that purchase and then sell tangible products without changing their basic form