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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. Selling price minus the variable cost per unit






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






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






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






5. 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






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






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






8. 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






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






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






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






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






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






14. Goods completed - but not yet sold






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






16. 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






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






18. 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






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






20. The costs of activities undertaken to support individual services






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






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






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






24. 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






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






26. Objective that can be quantified in a decision model






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






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






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






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






31. Anything for which a measurement of costs is desired






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






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






34. Goods partially worked on but not yet completed






35. Contribution margin per unit divided by selling price






36. A possible relevant occurrence in a decision model






37. Resource sacrificed or forgone to achieve a specific objective






38. Quantities of various products or services that constitute total unit sales






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






40. All direct manufacturing costs






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






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






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






44. Assignment of indirect costs to a particular cost object






45. 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






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






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






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






49. Goods partially worked on but not yet completed






50. Contribution margin per unit divided by selling price