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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. 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






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






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






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






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






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






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






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






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






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






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






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






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






16. Total revenues minus total variable costs






17. Contribution margin per unit divided by selling price






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






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






20. All manufacturing costs other than direct material costs






21. 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






22. 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






23. 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






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






25. Goods partially worked on but not yet completed






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






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






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






29. A unit or multiple units of a distinct product or service






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






31. 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






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






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






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






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






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






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






38. 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






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






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






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






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






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






44. Goods completed - but not yet sold






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






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.






47. 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






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






49. 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






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






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