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






3. Goods completed - but not yet sold






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






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






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






7. 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






8. Assignment of indirect costs to a particular cost object






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






10. A grouping of individual cost items






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






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






13. 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






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






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






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






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






18. 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.






19. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin






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






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. Anything for which a measurement of costs is desired






23. 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






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






25. 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.






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






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






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






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






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






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






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






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






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






35. 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






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






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






38. A possible relevant occurrence in a decision model






39. Gross margin divided by revenues






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






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






42. The costs of activities undertaken to support individual services






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






44. 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






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






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






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






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






49. Goods partially worked on but not yet completed






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