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






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






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






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






5. 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






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






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






8. 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






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






10. 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






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






12. 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






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






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






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






16. 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






17. Resource sacrificed or forgone to achieve a specific objective






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






19. Assignment of indirect costs to a particular cost object






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






21. The costs of activities undertaken to support individual services






22. Goods partially worked on but not yet completed






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






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






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






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






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






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






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






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






31. Contribution margin per unit divided by selling price






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






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






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






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






36. All direct manufacturing costs






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






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






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






40. 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






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






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






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






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






45. 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.






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






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






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






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






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