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Test your basic knowledge |
Cost Accounting Vocab
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Subject
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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. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
indirect costs of a cost object
choice criterion
net income
budgeted indirect-cost rate
2. A grouping of individual cost items
batch-level costs
average cost
cost pool
actual indirect-cost rate
3. Predicted economic results of the various possible combinations of actions and events in a decision model
outcomes
actual cost
probability distribution
normal costing
4. A variable - such as volume - that casually affects revenues
period costs
manufacturing overhead allocated
revenue driver
outcomes
5. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
batch-level costs
contribution income statement
product overcosting
probability
6. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
manufacturing overhead costs
unit cost
job-cost sheet
actual cost
7. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
margin of safety
cost assignment
inventoriable costs
idle time
8. Objective that can be quantified in a decision model
inventoriable costs
cost accumulation
choice criterion
outcomes
9. Amount by which budgeted (or actual) revenues exceed breakeven revenues
cost allocation
manufacturing overhead costs
margin of safety
cost-allocation base
10. Total revenues minus total variable costs
direct costs of a cost object
expected monetary value
batch-level costs
contribution margin
11. All costs in the income statement other than cost of goods sold
cost assignment
revenues
materials-requisition record
period costs
12. Assignment of indirect costs to a particular cost object
cost allocation
product-sustaining costs
service-sustaining costs
actual indirect-cost rate
13. 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
decision table
probability distribution
proration
activity-based costing (ABC)
14. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
manufacturing overhead applied
event
breakeven point (BEP)
activity-based management (ABM)
15. Cost-allocation base when the cost object is a job - product - or customer
probability
cost-application base
idle time
service-sustaining costs
16. A possible relevant occurrence in a decision model
job-costing system
variable cost
event
facility-sustaining costs
17. A product consumes a high level of resources but is reported to have a low cost per unit
overapplied indirect costs
product undercosting
cost object
normal costing
18. Anything for which a measurement of costs is desired
probability distribution
cost object
expected value
decision table
19. 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
cost tracing
manufacturing overhead applied
manufacturing overhead allocated
proration
20. Cost computed by dividing total cost by the number of units
net income
conversion costs
unit cost
facility-sustaining costs
21. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
conversion costs
cost hierarchy
actual indirect-cost rate
choice criterion
22. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
direct costs of a cost object
underallocated indirect costs
PV graph
job-cost record
23. Collection of cost data in some organized way by means of an accounting system
underabsorbed indirect costs
cost accumulation
expected value
PV graph
24. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
breakeven point (BEP)
operating leverage
underabsorbed indirect costs
cost-volume-profit (CVP) analysis
25. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
cost-allocation base
cost-volume-profit (CVP) analysis
underapplied indirect costs
cost driver
26. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
outcomes
batch-level costs
facility-sustaining costs
indirect costs of a cost object
27. Companies that provide services or intangible products to their customers
inventoriable costs
service-sector companies
merchandising-sector companies
expected monetary value
28. Direct materials in stock and awaiting use in the manufacturing process
uncertainty
decision table
variable cost
direct materials inventory
29. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
probability
operating leverage
manufacturing-sector companies
job-costing system
30. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
event
direct costs of a cost object
cost assignment
overallocated indirect costs
31. 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 that allocates indirect costs based on the budgeted indirect-cost rates times the actual quanti
manufacturing overhead costs
actual cost
direct costs of a cost object
normal costing
32. Cost that changes in total in proportion to changes in the related level of total activity or volume
variable cost
underapplied indirect costs
cost of goods manufactured
outcomes
33. Companies that purchase materials and components and convert them into various finished goods
work-in-process inventory
manufacturing-sector companies
cost-volume-profit (CVP) analysis
contribution income statement
34. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
margin of safety
product-cost cross-subsidization
outcomes
degree of operating leverage
35. Selling price minus the variable cost per unit
cost assignment
PV graph
contribution margin per unit
cost object
36. Companies that purchase and then sell tangible products without changing their basic form
merchandising-sector companies
finished goods inventory
indirect manufacturing costs
direct costs of a cost object
37. Contribution margin per unit divided by selling price
product overcosting
cost tracing
normal costing
contribution margin percentage
38. Quantities of various products or services that constitute total unit sales
job-cost sheet
outcomes
sales mix
labor-time record
39. Goods completed - but not yet sold
decision table
revenue driver
finished goods inventory
cost-allocation base
40. Costing system in which the cost object is masses of identical or similar units of a product or service
prime costs
process-costing system
uncertainty
direct materials inventory
41. Likelihood or chance that an event will occur
service-sustaining costs
cost-allocation base
conversion costs
probability
42. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
contribution income statement
cost assignment
proration
net income
43. An original record that supports journal entries in an accounting system
overtime premium
overallocated indirect costs
facility-sustaining costs
source document
44. Resource sacrificed or forgone to achieve a specific objective
uncertainty
cost
finished goods inventory
job-costing system
45. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
relevant range
work in progress
revenues
work-in-process inventory
46. 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.
indirect manufacturing costs
manufacturing overhead costs
product overcosting
expected monetary value
47. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
budgeted indirect-cost rate
inventoriable costs
manufacturing overhead applied
cost accumulation
48. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
underapplied indirect costs
service-sector companies
gross margin percentage
batch-level costs
49. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
actual indirect-cost rate
expected value
activity
work-in-process inventory
50. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
contribution margin
activity-based management (ABM)
cost-volume-profit (CVP) analysis
actual cost