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






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






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






4. Objective that can be quantified in a decision model






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






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






7. Assignment of indirect costs to a particular cost object






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






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






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






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






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






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






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






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






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






17. The costs of activities that cannot be traced to individual products or services but support the organization as a whole






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






19. A grouping of individual cost items






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






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






22. Contribution margin per unit divided by selling price






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






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






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






26. The costs of activities undertaken to support individual services






27. 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






28. 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






29. 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






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






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






32. 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






33. 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






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






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






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






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






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






39. 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






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






41. Selling price minus the variable cost per unit






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






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






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






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






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






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






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






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






50. 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.