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






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






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






4. 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






5. 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.






6. Objective that can be quantified in a decision model






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






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






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






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






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






12. Goods completed - but not yet sold






13. All manufacturing costs other than direct material costs






14. An original record that supports journal entries in an accounting system






15. 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






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






17. Resource sacrificed or forgone to achieve a specific objective






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






19. Cost that changes in total in proportion to changes in the related level of total activity or volume






20. 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.






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






22. Contribution margin per unit divided by selling price






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






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






25. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)






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






27. Likelihood or chance that an event will occur






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






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






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






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






32. 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






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






34. Direct materials in stock and awaiting use in the manufacturing process






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






36. The costs of activities undertaken to support individual services






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






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






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






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






41. Contribution margin divided by operating income at any given level of sales






42. All costs in the income statement other than cost of goods sold






43. 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






44. General term that encompasses both (1) tracing accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated costs that have an indirect relationship to a cost object






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






46. 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






47. A possible relevant occurrence in a decision model






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






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






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






Can you answer 50 questions in 15 minutes?



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