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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. Likelihood or chance that an event will occur






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






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






4. Goods partially worked on but not yet completed






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






6. 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






7. 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






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






9. Resource sacrificed or forgone to achieve a specific objective






10. 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






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






12. An original record that supports journal entries in an accounting system






13. Direct materials in stock and awaiting use in the manufacturing process






14. Costing system in which the cost object is masses of identical or similar units of a product or service






15. 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






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






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






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






20. Anything for which a measurement of costs is desired






21. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost






22. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way






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






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






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






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






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






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






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






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






31. Selling price minus the variable cost per unit






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






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






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






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






36. 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






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






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






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






40. 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






41. A grouping of individual cost items






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






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






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






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






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






47. 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






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






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






50. 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