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






2. 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






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






4. 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






5. Assignment of indirect costs to a particular cost object






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






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






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






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






10. Selling price minus the variable cost per unit






11. Quantities of various products or services that constitute total unit sales






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






13. Contribution margin per unit divided by selling price






14. The costs of activities undertaken to support individual services






15. 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






16. 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.






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






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






19. 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.






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






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






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






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






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






25. Include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in a economically feasible way






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






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






28. All manufacturing costs other than direct material costs






29. 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






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






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






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






33. 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






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






35. All direct manufacturing costs






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






37. Goods partially worked on but not yet completed






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






39. Companies that provide services or intangible products to their customers






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






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






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






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






44. Likelihood or chance that an event will occur






45. 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






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






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






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






49. Total revenues minus total variable costs






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