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






3. A possible relevant occurrence in a decision model






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






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






6. 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






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






8. 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






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






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






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






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






13. 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






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






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






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






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






18. 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






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






20. 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






21. Resource sacrificed or forgone to achieve a specific objective






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






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






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






27. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service






28. 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.






29. Gross margin divided by revenues






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






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






32. 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






33. 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






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






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






37. All manufacturing costs other than direct material costs






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






39. Goods completed - but not yet sold






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






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






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






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






44. Contribution margin per unit divided by selling price






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






46. Goods partially worked on but not yet completed






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






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






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






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