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Test your basic knowledge |
Cost Accounting Vocab
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Subject
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business-skills
Instructions:
Answer 50 questions in 15 minutes.
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study here
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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. 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
contribution margin
expected monetary value
probability distribution
manufacturing overhead applied
2. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
service-sustaining costs
underapplied indirect costs
manufacturing overhead costs
sensitivty analysis
3. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
contribution margin per unit
cost-allocation base
manufacturing overhead costs
expected monetary value
4. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
probability
direct costs of a cost object
proration
product-sustaining costs
5. Cost computed by dividing total cost by the number of units
overtime premium
underabsorbed indirect costs
unit cost
service-sustaining costs
6. 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.
margin of safety
work-in-process inventory
inventoriable costs
manufacturing overhead costs
7. A product consumes a high level of resources but is reported to have a low cost per unit
idle time
product undercosting
sales mix
cost hierarchy
8. The costs of activities performed on each individual unit of a product or service
output unit-level costs
product undercosting
cost accumulation
idle time
9. Contribution margin per unit divided by selling price
manufacturing overhead costs
period costs
normal costing
contribution margin ratio
10. Goods partially worked on but not yet completed
merchandising-sector companies
fixed cost
cost driver
work-in-process inventory
11. Contribution margin divided by operating income at any given level of sales
source document
degree of operating leverage
cost object
actual indirect-cost rate
12. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
expected value
operating income
overapplied indirect costs
idle time
13. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
proration
event
breakeven point (BEP)
job-cost sheet
14. Sum of the costs assigned to a product for a specific purpose
factory overhead costs
unit cost
batch-level costs
product costs
15. Direct materials in stock and awaiting use in the manufacturing process
service-sustaining costs
manufacturing overhead applied
direct materials inventory
direct manufacturing labor costs
16. A variable - such as the level of activity or volume - that casually affects costs over a given time span
job
cost assignment
variable cost
cost driver
17. Likelihood or chance that an event will occur
cost assignment
underabsorbed indirect costs
source document
probability
18. Anything for which a measurement of costs is desired
contribution margin per unit
cost object
manufacturing-sector companies
overabsorbed indirect costs
19. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
job-cost sheet
indirect manufacturing costs
contribution income statement
conversion costs
20. Costing system in which the cost object is masses of identical or similar units of a product or service
process-costing system
outcomes
direct costs of a cost object
batch-level costs
21. Contribution margin per unit divided by selling price
indirect manufacturing costs
underapplied indirect costs
work-in-process inventory
contribution margin percentage
22. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
batch-level costs
budgeted indirect-cost rate
overallocated indirect costs
factory overhead costs
23. 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.
contribution margin per unit
factory overhead costs
job-cost record
cost hierarchy
24. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
cost tracing
probability distribution
outcomes
expected value
25. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
underabsorbed indirect costs
conversion costs
job-costing system
direct material costs
26. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
variable cost
operating income
indirect costs of a cost object
manufacturing-sector companies
27. An original record that supports journal entries in an accounting system
source document
budgeted indirect-cost rate
direct materials inventory
cost-allocation base
28. Cost-allocation base when the cost object is a job - product - or customer
cost-application base
probability
materials-requisition record
expected value
29. Goods partially worked on but not yet completed
overabsorbed indirect costs
work in progress
expected value
cost-allocation base
30. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overapplied indirect costs
factory overhead costs
actual indirect-cost rate
PV graph
31. An event - task - or unit of work with a specified purpose
revenues
product undercosting
underallocated indirect costs
activity
32. Companies that provide services or intangible products to their customers
service-sector companies
cost accumulation
fixed cost
activity-based management (ABM)
33. 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
PV graph
prime costs
cost accumulation
manufacturing overhead allocated
34. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
product-cost cross-subsidization
proration
conversion costs
activity
35. Quantities of various products or services that constitute total unit sales
budgeted cost
sales mix
manufacturing overhead allocated
cost-allocation base
36. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
work-in-process inventory
direct manufacturing labor costs
budgeted cost
net income
37. All direct manufacturing costs
cost hierarchy
product-sustaining costs
budgeted indirect-cost rate
prime costs
38. A variable - such as volume - that casually affects revenues
labor-time record
idle time
revenue driver
product overcosting
39. Companies that purchase materials and components and convert them into various finished goods
probability
actual cost
cost-volume-profit (CVP) analysis
manufacturing-sector companies
40. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
manufacturing overhead applied
underabsorbed indirect costs
cost tracing
expected monetary value
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
activity-based costing (ABC)
source document
expected monetary value
inventoriable costs
42. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
proration
average cost
sensitivty analysis
contribution margin ratio
43. A product consumes a low level of resources but is reported to have a high cost per unit
contribution income statement
margin of safety
batch-level costs
product overcosting
44. 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
materials-requisition record
direct materials inventory
refined costing system
unit cost
45. Collection of cost data in some organized way by means of an accounting system
cost accumulation
margin of safety
actual indirect-cost rate
activity-based management (ABM)
46. 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
net income
actual cost
direct manufacturing labor costs
breakeven point (BEP)
47. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
manufacturing overhead allocated
adjusted allocation-rate approach
contribution margin
cost of goods manufactured
48. Cost that changes in total in proportion to changes in the related level of total activity or volume
cost
choice criterion
direct materials inventory
variable cost
49. Cost of goods brought to completion - whether they were started before or during the current accounting period
cost-application base
cost
output unit-level costs
cost of goods manufactured
50. Total revenues minus total variable costs
job-cost sheet
contribution margin ratio
contribution margin
output unit-level costs