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






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






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






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






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






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






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






8. The costs of activities undertaken to support individual services






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






10. 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






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






12. 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






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






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






15. 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.






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






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






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






19. A possible relevant occurrence in a decision model






20. 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






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






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






23. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like






24. Likelihood or chance that an event will occur






25. Gross margin divided by revenues






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






27. Goods partially worked on but not yet completed






28. Contribution margin per unit divided by selling price






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






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






31. 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






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






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






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






35. 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






36. 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






37. Goods partially worked on but not yet completed






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






39. 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






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






41. 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






42. 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.






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






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






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






46. 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






47. Contribution margin per unit divided by selling price






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






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






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