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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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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. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
service-sustaining costs
batch-level costs
PV graph
probability distribution
2. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
product-cost cross-subsidization
cost allocation
source document
idle time
3. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
probability distribution
expected monetary value
PV graph
cost of goods manufactured
4. Source document that contains information about the amount of labor time used for a specific job in a specific department
product-sustaining costs
net income
labor-time record
output unit-level costs
5. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
process-costing system
activity-based costing (ABC)
decision table
cost of goods manufactured
6. Cost of goods brought to completion - whether they were started before or during the current accounting period
actual cost
cost of goods manufactured
merchandising-sector companies
unit cost
7. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
activity-based management (ABM)
direct costs of a cost object
inventoriable costs
probability
8. 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
job
expected monetary value
direct manufacturing labor costs
idle time
9. Cost that changes in total in proportion to changes in the related level of total activity or volume
variable cost
cost accumulation
materials-requisition record
conversion costs
10. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
direct materials inventory
activity
direct costs of a cost object
breakeven point (BEP)
11. Cost computed by dividing total cost by the number of units
cost pool
underabsorbed indirect costs
average cost
cost driver
12. Gross margin divided by revenues
event
revenues
cost tracing
gross margin percentage
13. Describes the assignment of direct costs to a particular cost object
normal costing
cost tracing
product undercosting
direct materials inventory
14. 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
contribution income statement
sensitivty analysis
activity-based management (ABM)
underabsorbed indirect costs
15. Predicted economic results of the various possible combinations of actions and events in a decision model
outcomes
manufacturing overhead allocated
manufacturing overhead applied
manufacturing-sector companies
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.
facility-sustaining costs
indirect costs of a cost object
factory overhead costs
service-sustaining costs
17. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
cost tracing
overapplied indirect costs
revenues
period costs
18. Costing system in which the cost object is masses of identical or similar units of a product or service
choice criterion
process-costing system
cost object
operating leverage
19. 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
source document
refined costing system
overtime premium
labor-time record
20. The possibility that an actual amount will deviate from an expected amount
direct manufacturing labor costs
uncertainty
gross margin percentage
actual indirect-cost rate
21. 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
activity-based costing (ABC)
indirect costs of a cost object
unit cost
operating leverage
22. Goods partially worked on but not yet completed
decision table
adjusted allocation-rate approach
operating leverage
work in progress
23. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
product undercosting
contribution income statement
indirect costs of a cost object
product-sustaining costs
24. Companies that purchase and then sell tangible products without changing their basic form
merchandising-sector companies
idle time
labor-time record
cost of goods manufactured
25. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
refined costing system
overapplied indirect costs
direct materials inventory
actual cost
26. 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
choice criterion
underapplied indirect costs
cost hierarchy
contribution margin
27. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
underapplied indirect costs
cost-allocation base
revenues
proration
28. Examines the behavior of total revenues - total costs - and operating income as changes occur in the units sold - the selling price - the variable cost per unit - or the fixed costs of a product
cost-volume-profit (CVP) analysis
job-cost sheet
revenue driver
expected value
29. 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.
manufacturing overhead costs
variable cost
cost tracing
margin of safety
30. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
direct costs of a cost object
PV graph
activity
cost
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
degree of operating leverage
job-costing system
product overcosting
normal costing
32. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
underapplied indirect costs
output unit-level costs
actual costing
labor-time record
33. Goods partially worked on but not yet completed
actual costing
revenues
work-in-process inventory
margin of safety
34. Total revenues minus total variable costs
direct manufacturing labor costs
manufacturing overhead applied
contribution margin
underabsorbed indirect costs
35. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
actual indirect-cost rate
refined costing system
operating income
direct costs of a cost object
36. A product consumes a high level of resources but is reported to have a low cost per unit
underabsorbed indirect costs
product undercosting
cost-allocation base
direct materials inventory
37. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost driver
work-in-process inventory
overallocated indirect costs
revenues
38. Goods completed - but not yet sold
cost driver
finished goods inventory
adjusted allocation-rate approach
underallocated indirect costs
39. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
cost
facility-sustaining costs
cost-volume-profit (CVP) analysis
proration
40. Resource sacrificed or forgone to achieve a specific objective
cost
expected value
expected monetary value
source document
41. A variable - such as volume - that casually affects revenues
product costs
underabsorbed indirect costs
budgeted indirect-cost rate
revenue driver
42. An original record that supports journal entries in an accounting system
indirect manufacturing costs
cost allocation
source document
job-cost record
43. A grouping of individual cost items
cost pool
adjusted allocation-rate approach
manufacturing-sector companies
relevant range
44. Cost-allocation base when the cost object is a job - product - or customer
refined costing system
cost-application base
indirect costs of a cost object
inventoriable costs
45. Contribution margin per unit divided by selling price
margin of safety
contribution margin ratio
materials-requisition record
underapplied indirect costs
46. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
fixed cost
cost pool
inventoriable costs
product undercosting
47. Anything for which a measurement of costs is desired
cost-application base
average cost
cost object
indirect costs of a cost object
48. Quantities of various products or services that constitute total unit sales
product overcosting
manufacturing overhead allocated
sales mix
breakeven point (BEP)
49. 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
work in progress
contribution margin percentage
labor-time record
50. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
inventoriable costs
direct material costs
sales mix
facility-sustaining costs