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






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






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






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






5. 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






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






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






8. 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.






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






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






11. 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






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






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






14. Contribution margin per unit divided by selling price






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






16. 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






17. Goods completed - but not yet sold






18. The costs of activities undertaken to support individual services






19. 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






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






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






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






23. Selling price minus the variable cost per unit






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






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






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






27. 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






28. Goods partially worked on but not yet completed






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






30. Shows how changes in the quantity of units sold affect operating income






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






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






33. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service






34. A possible relevant occurrence in a decision model






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






36. 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






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






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






39. 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.






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






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






42. 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






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






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






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






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






47. 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






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






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






50. 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