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






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






3. The costs of activities undertaken to support individual services






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






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






6. Predicted economic results of the various possible combinations of actions and events in a decision model






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






8. 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






9. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced






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






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






12. Assignment of indirect costs to a particular cost object






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






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






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






16. Gross margin divided by revenues






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






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






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






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






21. All direct manufacturing costs






22. 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






23. Goods completed - but not yet sold






24. Goods partially worked on but not yet completed






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






26. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin






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






28. All manufacturing costs other than direct material costs






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






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.






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






32. 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






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






34. A grouping of individual cost items






35. Contribution margin per unit divided by selling price






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






37. A possible relevant occurrence in a decision model






38. 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






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






40. Contribution margin per unit divided by selling price






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






42. Objective that can be quantified in a decision model






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






44. 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






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






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






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






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






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






50. 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