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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. 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






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






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






4. 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






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 grouping of individual cost items






7. Anything for which a measurement of costs is desired






8. Assignment of indirect costs to a particular cost object






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






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






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






12. A possible relevant occurrence in a decision model






13. Objective that can be quantified in a decision model






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






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






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






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






18. 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






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






20. Resource sacrificed or forgone to achieve a specific objective






21. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)






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






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






24. 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






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






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






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






28. 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






29. Likelihood or chance that an event will occur






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






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






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






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






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






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






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






39. Goods partially worked on but not yet completed






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






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






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






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






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






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






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






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






48. 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






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






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