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






2. Goods partially worked on but not yet completed






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






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






5. The costs of activities undertaken to support individual services






6. Goods partially worked on but not yet completed






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






8. 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






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






10. A grouping of individual cost items






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






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






13. Contribution margin per unit divided by selling price






14. 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






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






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






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






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






19. Likelihood or chance that an event will occur






20. 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






21. 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






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






23. Goods completed - but not yet sold






24. 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






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






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






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






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






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






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






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






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






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






34. Total revenues minus total variable costs






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






36. 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






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






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






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






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






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






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






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






44. 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






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






46. Objective that can be quantified in a decision model






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






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






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






50. Assignment of indirect costs to a particular cost object