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






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






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






4. 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






5. All manufacturing costs other than direct material costs






6. 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.






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






8. Total revenues minus total variable costs






9. Anything for which a measurement of costs is desired






10. 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.






11. Goods partially worked on but not yet completed






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






13. 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






14. A possible relevant occurrence in a decision model






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






16. Gross margin divided by revenues






17. 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






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






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






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






21. The costs of activities undertaken to support individual services






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






23. 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






24. All direct manufacturing costs






25. Describes the assignment of direct costs to a particular cost object






26. 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






27. 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






28. 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






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






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






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






33. Collection of cost data in some organized way by means of an accounting system






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






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






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






37. 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






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






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






40. Goods completed - but not yet sold






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






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






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






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






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






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






47. Likelihood or chance that an event will occur






48. Objective that can be quantified in a decision model






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






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