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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 completed - but not yet sold






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






3. 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.






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






5. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job






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






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






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






9. 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






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






11. All direct manufacturing costs






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






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






14. 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






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






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






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






18. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






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






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






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






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






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






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






25. Companies that provide services or intangible products to their customers






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






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. 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.






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






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






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






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






33. 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






34. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates






35. 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






36. A grouping of individual cost items






37. Resource sacrificed or forgone to achieve a specific objective






38. 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






39. Goods partially worked on but not yet completed






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






41. Goods partially worked on but not yet completed






42. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)






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






44. 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






45. Describes the assignment of direct costs to a particular cost object






46. Assignment of indirect costs to a particular cost object






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






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






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






50. 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