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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. Goods partially worked on but not yet completed






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






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






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






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






6. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






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






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






9. 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






10. 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






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






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






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






14. 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






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






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






17. 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






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






19. Objective that can be quantified in a decision model






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






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






22. The costs of activities undertaken to support individual services






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






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






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






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






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






28. A possible relevant occurrence in a decision model






29. Anything for which a measurement of costs is desired






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






31. Likelihood or chance that an event will occur






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






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






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






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






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






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






38. 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






39. 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






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






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






42. 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






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






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






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






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






47. Assignment of indirect costs to a particular cost object






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






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






50. 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