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






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






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






4. Anything for which a measurement of costs is desired






5. 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






6. Total revenues minus total variable costs






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






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






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






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






11. 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.






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






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






15. 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






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






17. 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






18. An original record that supports journal entries in an accounting system






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






20. The costs of activities undertaken to support individual services






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






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






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






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






25. 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






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






27. All direct manufacturing costs






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






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






30. 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






31. Goods partially worked on but not yet completed






32. A grouping of individual cost items






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






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






35. Gross margin divided by revenues






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






37. A possible relevant occurrence in a decision model






38. Goods completed - but not yet sold






39. 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






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






41. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base






42. Selling price minus the variable cost per unit






43. Assignment of indirect costs to a particular cost object






44. 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






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






46. Goods partially worked on but not yet completed






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






48. All manufacturing costs other than direct material costs






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






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