Test your basic knowledge |

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






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






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






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






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






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






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






8. Selling price minus the variable cost per unit






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






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






11. 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






12. Resource sacrificed or forgone to achieve a specific objective






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






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






15. 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 that allocates indirect costs based on the budgeted indirect-cost rates times the actual quanti






16. Contribution margin per unit divided by selling price






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






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






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






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






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






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






23. 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






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






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






26. 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






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






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






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






30. 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






31. Likelihood or chance that an event will occur






32. All direct manufacturing costs






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






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






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






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






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






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






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






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






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. 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






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






44. Categorization of indirect costs into different cost pools on the basis of the different types of cost drivers - or cost-allocation bases - or different degrees of difficulty in determinig cause-and-effect (or benefits received) relationships






45. Goods partially worked on but not yet completed






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






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






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. A possible relevant occurrence in a decision model






50. Anything for which a measurement of costs is desired