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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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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. Direct materials in stock and awaiting use in the manufacturing process
direct materials inventory
prime costs
service-sector companies
contribution margin
2. Likelihood or chance that an event will occur
probability
outcomes
direct manufacturing labor costs
cost pool
3. Selling price minus the variable cost per unit
job
manufacturing overhead applied
direct material costs
contribution margin per unit
4. Describes the assignment of direct costs to a particular cost object
underapplied indirect costs
cost tracing
product-sustaining costs
cost-volume-profit (CVP) analysis
5. Anything for which a measurement of costs is desired
cost object
decision table
overapplied indirect costs
materials-requisition record
6. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overabsorbed indirect costs
unit cost
manufacturing-sector companies
activity
7. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
output unit-level costs
activity
job-cost record
actual indirect-cost rate
8. Assignment of indirect costs to a particular cost object
job-cost record
batch-level costs
cost allocation
activity
9. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
gross margin percentage
direct material costs
prime costs
decision table
10. 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.
process-costing system
direct materials inventory
fixed cost
indirect manufacturing costs
11. 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
sensitivty analysis
direct manufacturing labor costs
fixed cost
contribution margin per unit
12. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
cost of goods manufactured
cost hierarchy
choice criterion
overallocated indirect costs
13. The possibility that an actual amount will deviate from an expected amount
uncertainty
job
adjusted allocation-rate approach
normal costing
14. Quantities of various products or services that constitute total unit sales
product-sustaining costs
work in progress
breakeven point (BEP)
sales mix
15. 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
contribution income statement
indirect costs of a cost object
PV graph
manufacturing overhead allocated
16. 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
cost
manufacturing overhead applied
variable cost
underapplied indirect costs
17. 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
probability
refined costing system
factory overhead costs
job-costing system
18. Resource sacrificed or forgone to achieve a specific objective
job-costing system
underallocated indirect costs
cost
manufacturing overhead allocated
19. 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
net income
contribution income statement
cost hierarchy
process-costing system
20. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
activity
gross margin percentage
job-costing system
breakeven point (BEP)
21. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
decision table
activity-based management (ABM)
job
direct material costs
22. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
product-cost cross-subsidization
contribution income statement
revenues
expected monetary value
23. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
source document
factory overhead costs
revenues
choice criterion
24. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
overtime premium
cost allocation
direct costs of a cost object
indirect costs of a cost object
25. A grouping of individual cost items
source document
cost pool
revenues
period costs
26. Sum of the costs assigned to a product for a specific purpose
cost hierarchy
product costs
choice criterion
probability distribution
27. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
choice criterion
decision table
actual cost
materials-requisition record
28. Total revenues minus total variable costs
breakeven point (BEP)
overabsorbed indirect costs
contribution margin
sensitivty analysis
29. 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
refined costing system
adjusted allocation-rate approach
normal costing
manufacturing-sector companies
30. Cost-allocation base when the cost object is a job - product - or customer
cost-application base
cost
cost accumulation
conversion costs
31. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
job-costing system
direct material costs
net income
proration
32. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin
operating leverage
revenues
contribution margin percentage
margin of safety
33. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
cost-application base
breakeven point (BEP)
budgeted cost
job-costing system
34. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
overtime premium
product overcosting
expected monetary value
cost-application base
35. 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.
relevant range
manufacturing-sector companies
manufacturing overhead costs
facility-sustaining costs
36. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
job-cost record
activity-based costing (ABC)
uncertainty
contribution income statement
37. 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
margin of safety
direct manufacturing labor costs
activity-based management (ABM)
cost pool
38. 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
cost pool
direct material costs
direct materials inventory
finished goods inventory
39. A unit or multiple units of a distinct product or service
revenues
decision table
finished goods inventory
job
40. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
idle time
degree of operating leverage
cost pool
adjusted allocation-rate approach
41. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
job
operating income
activity-based management (ABM)
cost hierarchy
42. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
job-cost sheet
cost driver
probability distribution
product costs
43. An original record that supports journal entries in an accounting system
source document
cost
conversion costs
direct materials inventory
44. 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
event
cost-volume-profit (CVP) analysis
overtime premium
actual costing
45. 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.
cost object
activity-based management (ABM)
direct material costs
factory overhead costs
46. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
cost-allocation base
sales mix
cost hierarchy
fixed cost
47. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost driver
actual cost
budgeted indirect-cost rate
merchandising-sector companies
48. Goods partially worked on but not yet completed
average cost
actual costing
facility-sustaining costs
work-in-process inventory
49. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
contribution margin percentage
underapplied indirect costs
overapplied indirect costs
finished goods inventory
50. 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
expected monetary value
average cost
cost assignment
unit cost