SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Cost Accounting Vocab
Start Test
Study First
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. 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
job-costing system
cost assignment
budgeted indirect-cost rate
merchandising-sector companies
2. 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
merchandising-sector companies
actual cost
job-costing system
relevant range
3. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
direct manufacturing labor costs
cost tracing
job-costing system
cost-allocation base
4. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overallocated indirect costs
gross margin percentage
manufacturing-sector companies
factory overhead costs
5. Anything for which a measurement of costs is desired
prime costs
output unit-level costs
cost object
degree of operating leverage
6. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
PV graph
activity-based management (ABM)
contribution margin per unit
revenues
7. Shows how changes in the quantity of units sold affect operating income
adjusted allocation-rate approach
PV graph
indirect manufacturing costs
cost assignment
8. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
cost accumulation
contribution margin
expected value
actual cost
9. Contribution margin per unit divided by selling price
overallocated indirect costs
adjusted allocation-rate approach
contribution margin percentage
underabsorbed indirect costs
10. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
product-cost cross-subsidization
period costs
contribution margin
product costs
11. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
product-sustaining costs
work in progress
degree of operating leverage
manufacturing overhead costs
12. Goods partially worked on but not yet completed
operating leverage
work-in-process inventory
cost of goods manufactured
breakeven point (BEP)
13. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin
contribution margin percentage
budgeted indirect-cost rate
product undercosting
operating leverage
14. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
decision table
net income
actual indirect-cost rate
event
15. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
choice criterion
underallocated indirect costs
conversion costs
activity-based management (ABM)
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.
factory overhead costs
overtime premium
actual cost
manufacturing overhead costs
17. Source document that contains information about the amount of labor time used for a specific job in a specific department
labor-time record
cost
job-cost sheet
gross margin percentage
18. 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
refined costing system
sensitivty analysis
cost hierarchy
product undercosting
19. All costs in the income statement other than cost of goods sold
gross margin percentage
product costs
service-sector companies
period costs
20. Predicted economic results of the various possible combinations of actions and events in a decision model
service-sustaining costs
contribution margin per unit
outcomes
job-costing system
21. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
cost pool
cost object
activity-based management (ABM)
operating income
22. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
breakeven point (BEP)
facility-sustaining costs
underallocated indirect costs
manufacturing overhead allocated
23. Companies that provide services or intangible products to their customers
job
service-sector companies
revenue driver
probability distribution
24. The costs of activities undertaken to support individual services
actual cost
choice criterion
service-sustaining costs
underapplied indirect costs
25. A variable - such as the level of activity or volume - that casually affects costs over a given time span
margin of safety
batch-level costs
facility-sustaining costs
cost driver
26. Companies that purchase materials and components and convert them into various finished goods
job
manufacturing-sector companies
overabsorbed indirect costs
decision table
27. Cost computed by dividing total cost by the number of units
variable cost
average cost
materials-requisition record
overtime premium
28. Collection of cost data in some organized way by means of an accounting system
expected monetary value
overallocated indirect costs
cost accumulation
gross margin percentage
29. Contribution margin divided by operating income at any given level of sales
degree of operating leverage
gross margin percentage
revenue driver
budgeted cost
30. 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.
work in progress
uncertainty
manufacturing overhead costs
facility-sustaining costs
31. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
degree of operating leverage
fixed cost
activity-based management (ABM)
outcomes
32. Cost-allocation base when the cost object is a job - product - or customer
net income
actual costing
cost-application base
cost allocation
33. Cost that changes in total in proportion to changes in the related level of total activity or volume
average cost
variable cost
decision table
product-sustaining costs
34. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department
finished goods inventory
materials-requisition record
source document
actual indirect-cost rate
35. All manufacturing costs other than direct material costs
budgeted cost
gross margin percentage
conversion costs
product undercosting
36. 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
cost allocation
expected value
service-sector companies
37. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
finished goods inventory
underallocated indirect costs
job-cost sheet
overapplied indirect costs
38. Sum of the costs assigned to a product for a specific purpose
outcomes
product-cost cross-subsidization
merchandising-sector companies
product costs
39. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
outcomes
decision table
overtime premium
underapplied indirect costs
40. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
contribution margin per unit
direct costs of a cost object
sales mix
activity-based costing (ABC)
41. 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
proration
actual costing
actual cost
cost allocation
42. The possibility that an actual amount will deviate from an expected amount
PV graph
product-sustaining costs
uncertainty
revenues
43. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
variable cost
facility-sustaining costs
contribution income statement
expected monetary value
44. Companies that purchase and then sell tangible products without changing their basic form
fixed cost
batch-level costs
overtime premium
merchandising-sector companies
45. An event - task - or unit of work with a specified purpose
activity
sales mix
indirect manufacturing costs
cost-application base
46. A unit or multiple units of a distinct product or service
budgeted indirect-cost rate
job
cost assignment
activity-based management (ABM)
47. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
product undercosting
underapplied indirect costs
underabsorbed indirect costs
cost pool
48. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
gross margin percentage
adjusted allocation-rate approach
product costs
contribution income statement
49. Resource sacrificed or forgone to achieve a specific objective
proration
uncertainty
cost
overapplied indirect costs
50. A product consumes a high level of resources but is reported to have a low cost per unit
job-cost sheet
product undercosting
activity-based management (ABM)
job