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






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






3. Likelihood or chance that an event will occur






4. Contribution margin per unit divided by selling price






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






6. Cost of goods brought to completion - whether they were started before or during the current accounting period






7. Objective that can be quantified in a decision model






8. 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.






9. 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






10. Goods completed - but not yet sold






11. Assignment of indirect costs to a particular cost object






12. Goods partially worked on but not yet completed






13. 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






14. 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.






15. 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






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






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






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






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






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






21. 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.






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






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






24. A what-if technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes






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






26. 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






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






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






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






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






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






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






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






34. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes






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






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






37. Gross margin divided by revenues






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






39. 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






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






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






42. Goods partially worked on but not yet completed






43. 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






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






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






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






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






48. All direct manufacturing costs






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






50. 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