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






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






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






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






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






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






7. 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.






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






9. Total revenues minus total variable costs






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






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






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






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






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






15. Contribution margin per unit divided by selling price






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






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






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






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






20. 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






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






22. 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






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






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






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






27. All direct manufacturing costs






28. 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






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






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






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






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






33. All manufacturing costs other than direct material costs






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






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






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






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






38. 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






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






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






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






42. All costs in the income statement other than cost of goods sold






43. 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






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






45. Gross margin divided by revenues






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






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






48. 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






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






50. Goods partially worked on but not yet completed






Can you answer 50 questions in 15 minutes?



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