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Test your basic knowledge |
Cost Accounting Vocab
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Subject
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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. Anything for which a measurement of costs is desired
cost object
actual costing
budgeted cost
work-in-process inventory
2. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
direct material costs
finished goods inventory
cost hierarchy
probability distribution
3. Collection of cost data in some organized way by means of an accounting system
cost-volume-profit (CVP) analysis
cost accumulation
manufacturing-sector companies
margin of safety
4. The possibility that an actual amount will deviate from an expected amount
manufacturing overhead applied
cost hierarchy
uncertainty
actual costing
5. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
choice criterion
manufacturing overhead applied
margin of safety
actual cost
6. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
breakeven point (BEP)
PV graph
decision table
direct costs of a cost object
7. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
overtime premium
materials-requisition record
indirect costs of a cost object
cost of goods manufactured
8. Companies that provide services or intangible products to their customers
margin of safety
process-costing system
service-sector companies
operating leverage
9. Selling price minus the variable cost per unit
contribution margin per unit
PV graph
sales mix
overapplied indirect costs
10. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
expected monetary value
cost pool
underapplied indirect costs
indirect manufacturing costs
11. 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
contribution margin percentage
overabsorbed indirect costs
probability distribution
inventoriable costs
12. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
indirect costs of a cost object
overtime premium
job
decision table
13. Objective that can be quantified in a decision model
product costs
cost driver
actual cost
choice criterion
14. Goods partially worked on but not yet completed
work-in-process inventory
gross margin percentage
actual indirect-cost rate
unit cost
15. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
underabsorbed indirect costs
work-in-process inventory
contribution margin ratio
job-cost sheet
16. 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
factory overhead costs
manufacturing overhead applied
gross margin percentage
job-costing system
17. Cost of goods brought to completion - whether they were started before or during the current accounting period
activity-based management (ABM)
cost of goods manufactured
manufacturing-sector companies
merchandising-sector companies
18. 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
actual costing
indirect costs of a cost object
operating income
gross margin percentage
19. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
outcomes
expected value
margin of safety
relevant range
20. Amount by which budgeted (or actual) revenues exceed breakeven revenues
proration
margin of safety
merchandising-sector companies
cost object
21. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
underallocated indirect costs
activity-based costing (ABC)
overapplied indirect costs
refined costing system
22. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
actual indirect-cost rate
proration
outcomes
manufacturing overhead applied
23. 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
process-costing system
decision table
direct costs of a cost object
24. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
overapplied indirect costs
net income
idle time
revenues
25. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
labor-time record
materials-requisition record
expected monetary value
activity-based management (ABM)
26. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost
operating income
cost pool
product costs
budgeted cost
27. Source document that contains information about the amount of labor time used for a specific job in a specific department
revenue driver
cost
labor-time record
PV graph
28. Cost that changes in total in proportion to changes in the related level of total activity or volume
overapplied indirect costs
variable cost
conversion costs
revenue driver
29. A unit or multiple units of a distinct product or service
job
cost tracing
conversion costs
process-costing system
30. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
cost of goods manufactured
PV graph
net income
cost hierarchy
31. An original record that supports journal entries in an accounting system
contribution margin per unit
product-sustaining costs
facility-sustaining costs
source document
32. Direct materials in stock and awaiting use in the manufacturing process
decision table
direct materials inventory
inventoriable costs
output unit-level costs
33. The costs of activities performed on each individual unit of a product or service
job
cost-allocation base
output unit-level costs
unit cost
34. Assignment of indirect costs to a particular cost object
product undercosting
average cost
contribution margin percentage
cost allocation
35. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
work in progress
gross margin percentage
direct costs of a cost object
labor-time record
36. Contribution margin divided by operating income at any given level of sales
cost accumulation
degree of operating leverage
cost assignment
cost-application base
37. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
breakeven point (BEP)
cost accumulation
facility-sustaining costs
conversion costs
38. Cost-allocation base when the cost object is a job - product - or customer
inventoriable costs
net income
cost-application base
degree of operating leverage
39. Goods completed - but not yet sold
finished goods inventory
average cost
choice criterion
direct material costs
40. Contribution margin per unit divided by selling price
underallocated indirect costs
average cost
direct manufacturing labor costs
contribution margin ratio
41. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
product undercosting
product overcosting
overabsorbed indirect costs
underapplied indirect costs
42. Likelihood or chance that an event will occur
event
adjusted allocation-rate approach
probability
job-costing system
43. 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
product-sustaining costs
direct manufacturing labor costs
labor-time record
contribution margin per unit
44. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
inventoriable costs
cost-allocation base
breakeven point (BEP)
degree of operating leverage
45. 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
product overcosting
expected monetary value
facility-sustaining costs
46. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
adjusted allocation-rate approach
breakeven point (BEP)
work in progress
cost tracing
47. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overallocated indirect costs
merchandising-sector companies
factory overhead costs
activity-based costing (ABC)
48. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
output unit-level costs
contribution income statement
revenue driver
decision table
49. A grouping of individual cost items
output unit-level costs
cost pool
budgeted indirect-cost rate
overapplied indirect costs
50. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
product undercosting
direct material costs
operating income
adjusted allocation-rate approach