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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. Goods partially worked on but not yet completed






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






3. A grouping of individual cost items






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






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






6. 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






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






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






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






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






11. Predicted economic results of the various possible combinations of actions and events in a decision model






12. 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.






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






14. 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






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






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






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






18. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin






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






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






21. 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






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






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






24. 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






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






26. Total revenues minus total variable costs






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






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






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






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






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






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






33. Anything for which a measurement of costs is desired






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






35. The costs of activities undertaken to support individual services






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






37. 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






38. 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






39. Goods partially worked on but not yet completed






40. 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






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






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






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






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






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






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






47. Contribution margin per unit divided by selling price






48. 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.






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






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