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






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






6. Goods partially worked on but not yet completed






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






8. Goods partially worked on but not yet completed






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






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






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






12. Resource sacrificed or forgone to achieve a specific objective






13. 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






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






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






17. Goods completed - but not yet sold






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






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






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






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






22. A possible relevant occurrence in a decision model






23. 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






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






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






26. Gross margin divided by revenues






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






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






29. 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






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






31. 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






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






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






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






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






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






37. Selling price minus the variable cost per unit






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






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






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






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






42. 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






43. The costs of activities undertaken to support individual services






44. All manufacturing costs other than direct material costs






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






46. 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






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






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






49. A grouping of individual cost items






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







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