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






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






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






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






5. A grouping of individual cost items






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






7. 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






8. 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






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






10. All manufacturing costs other than direct material costs






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






12. 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






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






14. 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






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






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






17. 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






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






19. Selling price minus the variable cost per unit






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






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






22. Goods partially worked on but not yet completed






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






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






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






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






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






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






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






30. Resource sacrificed or forgone to achieve a specific objective






31. A possible relevant occurrence in a decision model






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






33. Assignment of indirect costs to a particular cost object






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






35. Anything for which a measurement of costs is desired






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






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






38. Objective that can be quantified in a decision model






39. Gross margin divided by revenues






40. 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






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






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






44. All direct manufacturing costs






45. 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






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 greater than the actual (incurred) amount in that period.






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






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






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