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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 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






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






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






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






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






6. Anything for which a measurement of costs is desired






7. Goods completed - but not yet sold






8. 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






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






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






11. Likelihood or chance that an event will occur






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






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






14. The possibility that an actual amount will deviate from an expected amount






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






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






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






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






20. All direct manufacturing costs






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






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






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






24. Contribution margin per unit divided by selling price






25. Total revenues minus total variable costs






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






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






28. 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






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






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






31. 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






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






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






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






35. All manufacturing costs other than direct material costs






36. 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






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






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






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






40. Objective that can be quantified in a decision model






41. 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 that allocates indirect costs based on the budgeted indirect-cost rates times the actual quanti






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






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






44. Resource sacrificed or forgone to achieve a specific objective






45. A grouping of individual cost items






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






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






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






49. 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






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