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






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






3. 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






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






5. Contribution margin per unit divided by selling price






6. 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






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






8. Selling price minus the variable cost per unit






9. A possible relevant occurrence in a decision model






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






11. 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.






12. Goods completed - but not yet sold






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






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






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






16. Objective that can be quantified in a decision model






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






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






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






20. The costs of activities undertaken to support individual services






21. Resource sacrificed or forgone to achieve a specific objective






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






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






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






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






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






27. Amount by which budgeted (or actual) revenues exceed breakeven revenues






28. 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






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






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






31. 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






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






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. 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






35. 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






36. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers






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






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






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






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






41. Likelihood or chance that an event will occur






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






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






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






45. Assignment of indirect costs to a particular cost object






46. Goods partially worked on but not yet completed






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






48. 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






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






50. All direct manufacturing costs