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






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






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






4. Goods partially worked on but not yet completed






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






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






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






8. Total revenues minus total variable costs






9. 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






10. Contribution margin per unit divided by selling price






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






12. 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.






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






14. Anything for which a measurement of costs is desired






15. 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






16. Selling price minus the variable cost per unit






17. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost






18. 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






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






20. 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






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






22. 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






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






24. All direct manufacturing costs






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






26. 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






27. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers






28. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object






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






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






31. Objective that can be quantified in a decision model






32. 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






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






34. All manufacturing costs other than direct material costs






35. Likelihood or chance that an event will occur






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






37. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin






38. Assignment of indirect costs to a particular cost object






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






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






41. 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.






42. 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






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






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






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






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






47. Contribution margin per unit divided by selling price






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






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






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