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






2. Goods partially worked on but not yet completed






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






4. 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






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






6. Gross margin divided by revenues






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






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






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






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. A grouping of individual cost items






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






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






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






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






16. Contribution margin per unit divided by selling price






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






18. The costs of activities undertaken to support individual services






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






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






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






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






23. Objective that can be quantified in a decision model






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






25. Contribution margin per unit divided by selling price






26. Goods completed - but not yet sold






27. Resource sacrificed or forgone to achieve a specific objective






28. 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






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






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






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






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






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






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






35. 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






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






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






39. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool






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






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






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. 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






44. 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






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






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






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






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






50. Selling price minus the variable cost per unit