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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. 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






2. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost






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






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






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






6. Cost that changes in total in proportion to changes in the related level of total activity or volume






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






8. Assignment of indirect costs to a particular cost object






9. 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






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






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






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






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






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






15. Amount by which budgeted (or actual) revenues exceed breakeven revenues






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






17. 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






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






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






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






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






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






23. 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






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






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






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






27. 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.






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






29. 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






30. The costs of activities undertaken to support individual services






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






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






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






34. Gross margin divided by revenues






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






36. All manufacturing costs other than direct material costs






37. Goods partially worked on but not yet completed






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






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






40. Goods partially worked on but not yet completed






41. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way






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






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






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






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






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






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






48. Selling price minus the variable cost per unit






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






50. 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







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