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






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






3. A possible relevant occurrence in a decision model






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






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






6. 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






7. An original record that supports journal entries in an accounting system






8. All manufacturing costs other than direct material costs






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






10. 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






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






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






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






14. 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






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






16. Resource sacrificed or forgone to achieve a specific objective






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






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






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






20. 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.






21. Contribution margin per unit divided by selling price






22. 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.






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






24. 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






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






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






27. Gross margin divided by revenues






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






29. Goods partially worked on but not yet completed






30. A grouping of individual cost items






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






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






33. Anything for which a measurement of costs is desired






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






36. Contribution margin per unit divided by selling price






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






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






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






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






41. 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






42. All direct manufacturing costs






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






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. Goods partially worked on but not yet completed






46. 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






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






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






49. Selling price minus the variable cost per unit






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