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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. Selling price minus the variable cost per unit






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






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






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






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. 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






7. Contribution margin per unit divided by selling price






8. The costs of activities undertaken to support individual services






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






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






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






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






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






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






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






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






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






18. Categorization of indirect costs into different cost pools on the basis of the different types of cost drivers - or cost-allocation bases - or different degrees of difficulty in determinig cause-and-effect (or benefits received) relationships






19. A grouping of individual cost items






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






21. Allocated amount of indirect costs in an accounting period is greater 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. 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






24. 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






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






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






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






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






29. Contribution margin per unit divided by selling price






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






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






32. 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






33. 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.






34. 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






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






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






37. Goods partially worked on but not yet completed






38. Total revenues minus total variable costs






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






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






41. Goods partially worked on but not yet completed






42. 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






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






44. 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.






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






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






47. 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






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






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






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