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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 grouping of individual cost items






2. Resource sacrificed or forgone to achieve a specific objective






3. Band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question






4. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin






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






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






7. The costs of activities performed on each individual unit of a product or service






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






9. Goods partially worked on but not yet completed






10. 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






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






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






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






14. Gross margin divided by revenues






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






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






17. The possibility that an actual amount will deviate from an expected amount






18. 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






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






20. 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






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






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






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






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






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






26. Goods partially worked on but not yet completed






27. Assignment of indirect costs to a particular cost object






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






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






30. Contribution margin per unit divided by selling price






31. 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






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






33. The costs of activities undertaken to support individual services






34. Cost of goods brought to completion - whether they were started before or during the current accounting period






35. 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.






36. 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






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






38. 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






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






40. 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






41. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur






42. 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






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






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






45. 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






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






47. All manufacturing costs other than direct material costs






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






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






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