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






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






3. 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






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






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






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






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






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






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






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






11. 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.






12. 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






13. All direct manufacturing costs






14. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced






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






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






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






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






19. Gross margin divided by revenues






20. 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.






21. Anything for which a measurement of costs is desired






22. Contribution margin per unit divided by selling price






23. A grouping of individual cost items






24. Objective that can be quantified in a decision model






25. 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






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






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






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






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






30. Goods partially worked on but not yet completed






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






32. Goods partially worked on but not yet completed






33. 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






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






35. 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.






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






37. Contribution margin per unit divided by selling price






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






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






40. A what-if technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes






41. 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






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






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






45. Total revenues minus total variable costs






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






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






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






49. Likelihood or chance that an event will occur






50. 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