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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. An event - task - or unit of work with a specified purpose
decision table
expected monetary value
service-sustaining costs
activity
2. Cost that changes in total in proportion to changes in the related level of total activity or volume
contribution margin
sales mix
variable cost
overabsorbed indirect costs
3. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
breakeven point (BEP)
manufacturing overhead allocated
product-sustaining costs
cost-volume-profit (CVP) analysis
4. Source document that contains information about the amount of labor time used for a specific job in a specific department
cost object
refined costing system
labor-time record
activity-based management (ABM)
5. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
product-sustaining costs
contribution margin percentage
expected value
breakeven point (BEP)
6. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
cost accumulation
actual cost
underapplied indirect costs
net income
7. Contribution margin divided by operating income at any given level of sales
cost accumulation
degree of operating leverage
product undercosting
contribution margin
8. Selling price minus the variable cost per unit
overtime premium
direct costs of a cost object
contribution margin per unit
proration
9. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
overapplied indirect costs
degree of operating leverage
actual cost
probability distribution
10. Cost computed by dividing total cost by the number of units
uncertainty
contribution income statement
direct material costs
unit cost
11. 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
inventoriable costs
manufacturing overhead allocated
overallocated indirect costs
operating income
12. Resource sacrificed or forgone to achieve a specific objective
product-sustaining costs
cost
cost-application base
contribution margin per unit
13. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
proration
product overcosting
actual cost
expected monetary value
14. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
fixed cost
uncertainty
underabsorbed indirect costs
inventoriable costs
15. 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
prime costs
event
cost hierarchy
normal costing
16. Contribution margin per unit divided by selling price
contribution margin percentage
overtime premium
net income
direct manufacturing labor costs
17. Cost of goods brought to completion - whether they were started before or during the current accounting period
activity-based costing (ABC)
overtime premium
underabsorbed indirect costs
cost of goods manufactured
18. Companies that provide services or intangible products to their customers
overabsorbed indirect costs
product-sustaining costs
facility-sustaining costs
service-sector companies
19. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
job-costing system
batch-level costs
actual cost
prime costs
20. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
indirect manufacturing costs
refined costing system
cost-allocation base
direct material costs
21. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
overabsorbed indirect costs
proration
job-cost record
finished goods inventory
22. All costs in the income statement other than cost of goods sold
service-sustaining costs
finished goods inventory
indirect manufacturing costs
period costs
23. 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
outcomes
contribution margin per unit
inventoriable costs
sales mix
24. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
conversion costs
fixed cost
batch-level costs
activity-based costing (ABC)
25. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
refined costing system
cost accumulation
revenues
adjusted allocation-rate approach
26. 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
job
expected value
direct material costs
cost-volume-profit (CVP) analysis
27. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
direct costs of a cost object
batch-level costs
decision table
revenue driver
28. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
work in progress
relevant range
expected monetary value
contribution income statement
29. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
underallocated indirect costs
indirect costs of a cost object
facility-sustaining costs
finished goods inventory
30. 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
activity-based costing (ABC)
product undercosting
source document
direct manufacturing labor costs
31. Likelihood or chance that an event will occur
unit cost
contribution income statement
idle time
probability
32. All direct manufacturing costs
job-cost sheet
conversion costs
prime costs
average cost
33. A unit or multiple units of a distinct product or service
manufacturing-sector companies
job
probability
activity
34. Direct materials in stock and awaiting use in the manufacturing process
adjusted allocation-rate approach
job-cost sheet
indirect costs of a cost object
direct materials inventory
35. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
breakeven point (BEP)
expected value
facility-sustaining costs
job
36. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
overtime premium
idle time
finished goods inventory
cost assignment
37. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
merchandising-sector companies
actual cost
overallocated indirect costs
process-costing system
38. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost driver
actual cost
revenues
conversion costs
39. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
product-sustaining costs
product-cost cross-subsidization
activity-based costing (ABC)
job-cost record
40. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overabsorbed indirect costs
output unit-level costs
variable cost
revenues
41. 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
job-costing system
actual costing
job-cost record
probability distribution
42. 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
cost-volume-profit (CVP) analysis
operating leverage
average cost
expected value
43. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
manufacturing overhead costs
gross margin percentage
expected value
unit cost
44. 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
budgeted indirect-cost rate
cost hierarchy
fixed cost
cost-application base
45. Goods partially worked on but not yet completed
process-costing system
product costs
gross margin percentage
work in progress
46. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
merchandising-sector companies
cost accumulation
direct costs of a cost object
cost-application base
47. A product consumes a low level of resources but is reported to have a high cost per unit
product overcosting
merchandising-sector companies
actual indirect-cost rate
decision table
48. 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
source document
actual cost
finished goods inventory
49. A possible relevant occurrence in a decision model
manufacturing overhead allocated
activity-based management (ABM)
event
underallocated indirect costs
50. Anything for which a measurement of costs is desired
event
indirect manufacturing costs
cost object
work in progress