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






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






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






4. Contribution margin per unit divided by selling price






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






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






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






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






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






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






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






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






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






14. 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






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






16. Total revenues minus total variable costs






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






18. Contribution margin per unit divided by selling price






19. All manufacturing costs other than direct material costs






20. All direct manufacturing costs






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






22. 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






23. 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






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






25. 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






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






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






28. 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






29. 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






30. 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.






31. A grouping of individual cost items






32. 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






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






34. 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






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






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






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






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






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






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






41. The costs of activities undertaken to support individual services






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






43. 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






44. 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






45. Likelihood or chance that an event will occur






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






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






48. 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.






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






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