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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. 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






2. Assignment of indirect costs to a particular cost object






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






4. Anything for which a measurement of costs is desired






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






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






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






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






9. 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






10. 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.






11. Goods partially worked on but not yet completed






12. All manufacturing costs other than direct material costs






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






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






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






16. Contribution margin per unit divided by selling price






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






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






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






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






21. 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






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






23. 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






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






25. 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






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






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






28. 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






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






30. Describes the assignment of direct costs to a particular cost object






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






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






33. A variable - such as the level of activity or volume - that casually affects costs over a given time span






34. Contribution margin per unit divided by selling price






35. 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






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






37. Resource sacrificed or forgone to achieve a specific objective






38. 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






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






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






41. Objective that can be quantified in a decision model






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






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






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






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






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






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






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






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






50. All direct manufacturing costs