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






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






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






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






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






6. Cost of goods brought to completion - whether they were started before or during the current accounting period






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






8. 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






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






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






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






12. Gross margin divided by revenues






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






14. 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






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






16. 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.






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






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






19. 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






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






21. 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






22. Goods partially worked on but not yet completed






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






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






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






26. 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






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






28. 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






29. 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.






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






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






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






33. Goods partially worked on but not yet completed






34. Total revenues minus total variable costs






35. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool






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






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






38. Goods completed - but not yet sold






39. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






40. Resource sacrificed or forgone to achieve a specific objective






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






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






43. A grouping of individual cost items






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






45. Contribution margin per unit divided by selling price






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






47. Anything for which a measurement of costs is desired






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






49. 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.






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