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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. Objective that can be quantified in a decision model






2. 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.






3. Contribution margin per unit divided by selling price






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






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






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






7. 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






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






9. All direct manufacturing costs






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






11. Likelihood or chance that an event will occur






12. 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






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






14. A possible relevant occurrence in a decision model






15. A grouping of individual cost items






16. Resource sacrificed or forgone to achieve a specific objective






17. The costs of activities undertaken to support individual services






18. Goods partially worked on but not yet completed






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






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






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






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






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






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






25. 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






26. Gross margin divided by revenues






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






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






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






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






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






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






33. 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.






34. 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






35. 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






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






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






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






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. 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






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






42. Total revenues minus total variable costs






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






44. Selling price minus the variable cost per unit






45. Goods completed - but not yet sold






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






47. 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






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






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






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