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






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






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






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






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.






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






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






8. Resource sacrificed or forgone to achieve a specific objective






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






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






11. A possible relevant occurrence in a decision model






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






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






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






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






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






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.






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






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






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






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






22. Gross margin divided by revenues






23. Assignment of indirect costs to a particular cost object






24. The costs of activities undertaken to support individual services






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






26. Goods completed - but not yet sold






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






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






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






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






32. A variable - such as the level of activity or volume - that casually affects costs over a given time span






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






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






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






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






37. Contribution margin per unit divided by selling price






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






39. A grouping of individual cost items






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






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






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






43. Likelihood or chance that an event will occur






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






45. Goods partially worked on but not yet completed






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






47. Total revenues minus total variable costs






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






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






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