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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. Anything for which a measurement of costs is desired






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






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






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






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






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






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






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






9. Selling price minus the variable cost per unit






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






11. 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






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






13. Objective that can be quantified in a decision model






14. Goods partially worked on but not yet completed






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






16. 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






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






18. 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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






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






34. Assignment of indirect costs to a particular cost object






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






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






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






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






39. Goods completed - but not yet sold






40. Contribution margin per unit divided by selling price






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






42. Likelihood or chance that an event will occur






43. 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






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






45. 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.






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






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






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






49. A grouping of individual cost items






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