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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. An original record that supports journal entries in an accounting system






2. Contribution margin per unit divided by selling price






3. 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






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






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






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






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






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






9. A possible relevant occurrence in a decision model






10. Selling price minus the variable cost per unit






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






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






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






14. 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






15. Assignment of indirect costs to a particular cost object






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






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






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






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






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






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






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






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






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






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






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






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






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






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 that cannot be traced to individual products or services but support the organization as a whole






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






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






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






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






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






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






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






38. A grouping of individual cost items






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






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






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






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






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






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






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






46. Goods partially worked on but not yet completed






47. 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






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






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






50. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers