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






2. 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






3. Resource sacrificed or forgone to achieve a specific objective






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






5. Selling price minus the variable cost per unit






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






7. All manufacturing costs other than direct material costs






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






9. 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.






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






11. 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






12. Anything for which a measurement of costs is desired






13. Goods completed - but not yet sold






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






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






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






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






18. Contribution margin per unit divided by selling price






19. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability






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






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






22. Goods partially worked on but not yet completed






23. 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






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






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






26. 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






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






28. Gross margin divided by revenues






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






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






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






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






33. Total revenues minus total variable costs






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






35. 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






36. Likelihood or chance that an event will occur






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






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






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






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






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






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






43. 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






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






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






46. 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.






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






48. Objective that can be quantified in a decision model






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






50. The costs of activities undertaken to support individual services