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






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






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






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






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






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






7. 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






8. Resource sacrificed or forgone to achieve a specific objective






9. 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.






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






11. 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






12. 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






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






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






16. 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.






17. Objective that can be quantified in a decision model






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






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






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






21. 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






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






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






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






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






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






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. 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.






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






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






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






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






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






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






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






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






37. The costs of activities undertaken to support individual services






38. 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






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






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






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






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






43. Likelihood or chance that an event will occur






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






45. Goods partially worked on but not yet completed






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






47. Predicted economic results of the various possible combinations of actions and events in a decision model






48. Goods completed - but not yet sold






49. A possible relevant occurrence in a decision model






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