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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object






2. Contribution margin per unit divided by selling price






3. Objective that can be quantified in a decision model






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






5. The costs of activities undertaken to support individual services






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






7. 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






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






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






10. Likelihood or chance that an event will occur






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






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






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






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






15. Selling price minus the variable cost per unit






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






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






18. 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.






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






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






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






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






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






24. 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






25. 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






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






27. A possible relevant occurrence in a decision model






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






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






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. 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






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






33. Goods partially worked on but not yet completed






34. Amount by which budgeted (or actual) revenues exceed breakeven revenues






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






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






37. 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






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






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






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






41. Direct materials in stock and awaiting use in the manufacturing process






42. A what-if technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes






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






45. 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






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






47. 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.






48. Gross margin divided by revenues






49. 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






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