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






2. The costs of activities undertaken to support individual services






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






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






5. Cost of goods brought to completion - whether they were started before or during the current accounting period






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






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






8. Total revenues minus total variable costs






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






10. All manufacturing costs other than direct material costs






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






12. 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.






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






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






15. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object






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






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






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






19. 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






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






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






22. 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






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. Contribution margin per unit divided by selling price






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






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






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






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






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






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






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






32. 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






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






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






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






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






37. 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






38. Anything for which a measurement of costs is desired






39. A grouping of individual cost items






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






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






42. 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






43. Assignment of indirect costs to a particular cost object






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






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






46. Resource sacrificed or forgone to achieve a specific objective






47. 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






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






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






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