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






2. Contribution margin per unit divided by selling price






3. 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.






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






5. 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






6. All direct manufacturing costs






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






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






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






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






11. Anything for which a measurement of costs is desired






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






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






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






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






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






17. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base






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






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






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






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






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






23. Assignment of indirect costs to a particular cost object






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






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






26. General term that encompasses both (1) tracing accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated costs that have an indirect relationship to a cost object






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






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






29. 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.






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






31. 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






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






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






34. 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






35. A possible relevant occurrence in a decision model






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






37. Likelihood or chance that an event will occur






38. 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






39. A grouping of individual cost items






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






41. 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






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






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






44. 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






45. The costs of activities undertaken to support individual services






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






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






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






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






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