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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. 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






2. 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






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






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






5. Anything for which a measurement of costs is desired






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






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






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






9. Contribution margin per unit divided by selling price






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






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






12. Goods partially worked on but not yet completed






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






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






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






16. 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.






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






18. 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






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






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






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






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






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






24. The costs of activities undertaken to support individual services






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






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






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






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






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






30. 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.






31. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability






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






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






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






35. All manufacturing costs other than direct material costs






36. 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






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






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






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






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






41. 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






42. The possibility that an actual amount will deviate from an expected amount






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






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






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






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






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






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






49. Resource sacrificed or forgone to achieve a specific objective






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