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






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






3. Goods partially worked on but not yet completed






4. Assignment of indirect costs to a particular cost object






5. 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






6. Contribution margin per unit divided by selling price






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






9. Selling price minus the variable cost per unit






10. Goods partially worked on but not yet completed






11. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers






12. Gross margin divided by revenues






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






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






15. The costs of activities undertaken to support individual services






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






17. Likelihood or chance that an event will occur






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






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






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






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






22. 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






23. 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.






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






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






26. 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






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






28. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department






29. Contribution margin per unit divided by selling price






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






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






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






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






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






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






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






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






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






39. 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






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






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






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






43. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






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






45. 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






46. All manufacturing costs other than direct material costs






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






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






49. Anything for which a measurement of costs is desired






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