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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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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. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
revenue driver
decision table
direct manufacturing labor costs
product overcosting
2. Predicted economic results of the various possible combinations of actions and events in a decision model
uncertainty
manufacturing overhead allocated
outcomes
overabsorbed indirect costs
3. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
fixed cost
work-in-process inventory
variable cost
underabsorbed indirect costs
4. All costs in the income statement other than cost of goods sold
period costs
cost object
cost of goods manufactured
uncertainty
5. 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.
factory overhead costs
cost accumulation
operating income
net income
6. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
relevant range
probability distribution
labor-time record
underabsorbed indirect costs
7. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
underapplied indirect costs
product overcosting
output unit-level costs
cost accumulation
8. Resource sacrificed or forgone to achieve a specific objective
cost
expected value
expected monetary value
choice criterion
9. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
cost allocation
job-costing system
actual indirect-cost rate
output unit-level costs
10. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
decision table
merchandising-sector companies
underallocated indirect costs
overtime premium
11. A possible relevant occurrence in a decision model
manufacturing overhead costs
probability distribution
event
actual indirect-cost rate
12. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
proration
adjusted allocation-rate approach
contribution margin percentage
source document
13. Costing system in which the cost object is masses of identical or similar units of a product or service
process-costing system
refined costing system
conversion costs
probability
14. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department
materials-requisition record
product-cost cross-subsidization
job-costing system
gross margin percentage
15. An original record that supports journal entries in an accounting system
uncertainty
overtime premium
refined costing system
source document
16. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
average cost
outcomes
degree of operating leverage
product-sustaining costs
17. 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.
period costs
sales mix
indirect manufacturing costs
cost tracing
18. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
contribution income statement
cost accumulation
cost driver
output unit-level costs
19. Shows how changes in the quantity of units sold affect operating income
PV graph
inventoriable costs
cost hierarchy
decision table
20. 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
budgeted indirect-cost rate
cost-volume-profit (CVP) analysis
budgeted cost
direct materials inventory
21. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost
sales mix
manufacturing overhead applied
budgeted cost
job-cost record
22. Gross margin divided by revenues
product costs
idle time
expected value
gross margin percentage
23. Assignment of indirect costs to a particular cost object
budgeted cost
breakeven point (BEP)
job
cost allocation
24. The costs of activities undertaken to support individual services
inventoriable costs
direct materials inventory
finished goods inventory
service-sustaining costs
25. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
activity-based management (ABM)
fixed cost
cost-allocation base
service-sector companies
26. Goods completed - but not yet sold
activity-based costing (ABC)
contribution margin ratio
finished goods inventory
actual cost
27. 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
product overcosting
sales mix
manufacturing overhead allocated
contribution margin percentage
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
revenues
direct manufacturing labor costs
activity-based costing (ABC)
refined costing system
29. A product consumes a low level of resources but is reported to have a high cost per unit
product overcosting
manufacturing overhead allocated
cost tracing
event
30. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
cost of goods manufactured
underallocated indirect costs
indirect costs of a cost object
labor-time record
31. Companies that purchase materials and components and convert them into various finished goods
product costs
actual costing
manufacturing-sector companies
margin of safety
32. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost driver
manufacturing overhead costs
cost of goods manufactured
cost hierarchy
33. Cost that changes in total in proportion to changes in the related level of total activity or volume
product-sustaining costs
idle time
overapplied indirect costs
variable cost
34. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
direct material costs
activity-based management (ABM)
expected monetary value
job
35. Companies that purchase and then sell tangible products without changing their basic form
merchandising-sector companies
net income
service-sector companies
overtime premium
36. 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
proration
cost object
relevant range
conversion costs
37. Contribution margin per unit divided by selling price
contribution margin percentage
uncertainty
work in progress
job-cost sheet
38. Direct materials in stock and awaiting use in the manufacturing process
job-cost sheet
factory overhead costs
relevant range
direct materials inventory
39. A grouping of individual cost items
manufacturing overhead costs
cost pool
factory overhead costs
margin of safety
40. 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
activity-based costing (ABC)
cost assignment
actual cost
overapplied indirect costs
41. Cost-allocation base when the cost object is a job - product - or customer
cost-application base
work-in-process inventory
adjusted allocation-rate approach
direct costs of a cost object
42. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
variable cost
direct costs of a cost object
actual cost
normal costing
43. Likelihood or chance that an event will occur
manufacturing overhead applied
overapplied indirect costs
probability
overabsorbed indirect costs
44. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overallocated indirect costs
activity-based management (ABM)
service-sector companies
labor-time record
45. Goods partially worked on but not yet completed
direct material costs
product undercosting
work in progress
cost-volume-profit (CVP) analysis
46. Contribution margin divided by operating income at any given level of sales
degree of operating leverage
proration
expected value
facility-sustaining costs
47. Total revenues minus total variable costs
contribution margin
cost driver
product-cost cross-subsidization
materials-requisition record
48. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
adjusted allocation-rate approach
expected value
cost object
direct material costs
49. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overabsorbed indirect costs
revenue driver
actual costing
underallocated indirect costs
50. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
batch-level costs
cost assignment
proration
cost of goods manufactured