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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. 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






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






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






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






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






6. 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.






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






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






9. Contribution margin per unit divided by selling price






10. Goods partially worked on but not yet completed






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






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






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






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






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






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






17. Likelihood or chance that an event will occur






18. Anything for which a measurement of costs is desired






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






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






21. Contribution margin per unit divided by selling price






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






23. 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.






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






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






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






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






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






29. Goods partially worked on but not yet completed






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






31. An event - task - or unit of work with a specified purpose






32. Companies that provide services or intangible products to their customers






33. 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






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






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






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






37. All direct manufacturing costs






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






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






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






41. 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






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






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






44. 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






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






46. 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






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






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






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






50. Total revenues minus total variable costs