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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Cost computed by dividing total cost by the number of units






2. 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






3. Gross margin divided by revenues






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






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






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






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






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






9. The costs of activities undertaken to support individual services






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






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






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






13. 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.






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






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






16. A unit or multiple units of a distinct product or service






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






18. Goods partially worked on but not yet completed






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






20. 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.






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






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






23. Goods partially worked on but not yet completed






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






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






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






27. All direct manufacturing costs






28. A grouping of individual cost items






29. Anything for which a measurement of costs is desired






30. Contribution margin per unit divided by selling price






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






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






33. Resource sacrificed or forgone to achieve a specific objective






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






35. 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






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






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






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






39. 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






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






41. 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






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






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






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






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






46. 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






47. Likelihood or chance that an event will occur






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






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






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