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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. Goods completed - but not yet sold






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






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






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






5. Goods partially worked on but not yet completed






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






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






8. Resource sacrificed or forgone to achieve a specific objective






9. Gross margin divided by revenues






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






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






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






13. Selling price minus the variable cost per unit






14. 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






15. All direct manufacturing costs






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






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






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






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






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






21. 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






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






23. Likelihood or chance that an event will occur






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






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






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






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






28. 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






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






30. The costs of activities undertaken to support individual services






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






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






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






34. 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






35. Assignment of indirect costs to a particular cost object






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






37. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






38. Describes the assignment of direct costs to a particular cost object






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






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






41. Contribution margin per unit divided by selling price






42. 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






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






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






45. Anything for which a measurement of costs is desired






46. 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.






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






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






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






50. A possible relevant occurrence in a decision model