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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. Goods partially worked on but not yet completed






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






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






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






5. 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






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






7. 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






8. Resource sacrificed or forgone to achieve a specific objective






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






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






11. 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.






12. An event - task - or unit of work with a specified purpose






13. 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






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






15. 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.






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.






17. 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






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






19. Goods partially worked on but not yet completed






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






21. 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






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






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






24. Objective that can be quantified in a decision model






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






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






27. 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






28. A possible relevant occurrence in a decision model






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






30. The costs of activities undertaken to support individual services






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






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






33. Anything for which a measurement of costs is desired






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






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






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






37. 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






38. 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






39. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)






40. 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






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






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






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






44. Companies that purchase and then sell tangible products without changing their basic form






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






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






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






48. Contribution margin per unit divided by selling price






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






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