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






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






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






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






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






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






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






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






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






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






11. All direct manufacturing costs






12. Objective that can be quantified in a decision model






13. 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






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






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






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






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






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






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






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






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






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






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






24. Assignment of indirect costs to a particular cost object






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






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






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






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






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






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






31. 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.






32. 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






33. The costs of activities undertaken to support individual services






34. An event - task - or unit of work with a specified purpose






35. 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.






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






37. Selling price minus the variable cost per unit






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






39. 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






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. 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






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






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






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






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






46. All manufacturing costs other than direct material costs






47. 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






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






49. Anything for which a measurement of costs is desired






50. Goods partially worked on but not yet completed