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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. 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






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






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






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






5. All manufacturing costs other than direct material costs






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






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






8. 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






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






10. Objective that can be quantified in a decision model






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






12. Predicted economic results of the various possible combinations of actions and events in a decision model






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






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






15. All direct manufacturing costs






16. 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






17. 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.






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






19. Contribution margin per unit divided by selling price






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






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






22. Contribution margin per unit divided by selling price






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






42. The costs of activities undertaken to support individual services






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






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






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






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






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






48. Likelihood or chance that an event will occur






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






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