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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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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. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins






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






3. 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






4. Sum of the costs assigned to a product for a specific purpose






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






6. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base






7. Shows how changes in the quantity of units sold affect operating income






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






9. Describes the assignment of direct costs to a particular cost object






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






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






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






13. 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






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






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






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






17. 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






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






19. Likelihood or chance that an event will occur






20. 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






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






22. Approach to costing that focuses on individual activities as the fundamental cost objects. It uses costs of these activities as the basis for assigning costs to other cost objects such as products or services






23. Cost computed by dividing total cost by the number of units






24. 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






25. 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 that allocates indirect costs based on the budgeted indirect-cost rates times the actual quanti






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






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






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






29. Objective that can be quantified in a decision model






30. All manufacturing costs other than direct material costs






31. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service






32. Contribution margin per unit divided by selling price






33. A possible relevant occurrence in a decision model






34. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)






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






36. The costs of activities that cannot be traced to individual products or services but support the organization as a whole






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






38. 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.






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






40. Selling price minus the variable cost per unit






41. Assignment of indirect costs to a particular cost object






42. The possibility that an actual amount will deviate from an expected amount






43. 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






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






45. A product consumes a low level of resources but is reported to have a high cost per unit






46. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero






47. All costs of a product that are considered assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold






48. Contribution margin per unit divided by selling price






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






50. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight