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






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






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






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






5. A possible relevant occurrence in a decision model






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






7. 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






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






9. 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






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






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






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






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






14. Goods completed - but not yet sold






15. Contribution margin per unit divided by selling price






16. Selling price minus the variable cost per unit






17. 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






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






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






20. 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






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






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






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






24. Contribution margin per unit divided by selling price






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






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






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






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






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






30. 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






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






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






33. Goods partially worked on but not yet completed






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






35. 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






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. 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






38. 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






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






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






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






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






43. A grouping of individual cost items






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






45. 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






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






47. Resource sacrificed or forgone to achieve a specific objective






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






49. All direct manufacturing costs






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