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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.
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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. 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






2. Goods partially worked on but not yet completed






3. Anything for which a measurement of costs is desired






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






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






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






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






8. 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






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






10. Total revenues minus total variable costs






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






12. Resource sacrificed or forgone to achieve a specific objective






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






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






15. 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






16. 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






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






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






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






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






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






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






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






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






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






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






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






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






29. Source document that contains information about the amount of labor time used for a specific job in a specific department






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






31. 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






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






33. The costs of activities undertaken to support individual services






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






35. Selling price minus the variable cost per unit






36. 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






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






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






39. Goods partially worked on but not yet completed






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






41. A grouping of individual cost items






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






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






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






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






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






47. Objective that can be quantified in a decision model






48. Likelihood or chance that an event will occur






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






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







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