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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. 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






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






3. All manufacturing costs other than direct material costs






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






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






6. The possibility that an actual amount will deviate from an expected amount






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






8. Goods partially worked on but not yet completed






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






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






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






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






13. 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






14. Goods partially worked on but not yet completed






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






16. 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.






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






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






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






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






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






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






23. 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.






24. Source document that contains information about the amount of labor time used for a specific job in a specific department






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






26. 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






27. Contribution margin per unit divided by selling price






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






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






30. Anything for which a measurement of costs is desired






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






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






33. Gross margin divided by revenues






34. Likelihood or chance that an event will occur






35. A grouping of individual cost items






36. 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






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






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






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






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






41. 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






42. 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






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






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






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






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






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






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






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






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