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






2. 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.






3. 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






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






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






6. Contribution margin per unit divided by selling price






7. 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.






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






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






10. 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






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






12. 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






13. A possible relevant occurrence in a decision model






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






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






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






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






18. 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






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






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






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






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






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






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






25. Goods completed - but not yet sold






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






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






28. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume






29. Total revenues minus total variable costs






30. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






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






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






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






34. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way






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






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






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






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






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






40. Goods partially worked on but not yet completed






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






42. 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






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






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






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






46. All direct manufacturing costs






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






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






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






50. Objective that can be quantified in a decision model