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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.
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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. 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






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






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






4. Contribution margin per unit divided by selling price






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






6. 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






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






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






9. 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






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






11. Resource sacrificed or forgone to achieve a specific objective






12. 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






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






14. 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






15. Sum of the costs assigned to a product for a specific purpose






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






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






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






19. Likelihood or chance that an event will occur






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






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






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






23. The costs of activities undertaken to support individual services






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






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






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






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






28. 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






29. Total revenues minus total variable costs






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






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






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






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






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






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






36. 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.






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






38. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods 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. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






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






42. 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






43. Contribution margin per unit divided by selling price






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






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






46. Goods completed - but not yet sold






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






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






49. A possible relevant occurrence in a decision model






50. 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







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