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






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






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






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






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






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






7. 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






8. The costs of activities undertaken to support individual services






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






10. Contribution margin per unit divided by selling price






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






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






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






14. 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






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






16. All manufacturing costs other than direct material costs






17. 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






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






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






20. 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






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






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






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






24. 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






25. Goods partially worked on but not yet completed






26. 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






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






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






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






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






31. Anything for which a measurement of costs is desired






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






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






34. 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.






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






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






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






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






39. All direct manufacturing costs






40. 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






41. 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






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






43. The costs of activities performed on each individual unit of a product or service






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






45. Objective that can be quantified in a decision model






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






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






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. Selling price minus the variable cost per unit






50. Total revenues minus total variable costs