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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. 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






2. Selling price minus the variable cost per unit






3. Resource sacrificed or forgone to achieve a specific objective






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






5. Likelihood or chance that an event will occur






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






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






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






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






10. Contribution margin per unit divided by selling price






11. Gross margin divided by revenues






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






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






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






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






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






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






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






19. 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.






20. Sum of the costs assigned to a product for a specific purpose






21. All direct manufacturing costs






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






23. Cost that changes in total in proportion to changes in the related level of total activity or volume






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






25. 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






26. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates






27. 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






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






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






30. 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






31. Objective that can be quantified in a decision model






32. A possible relevant occurrence in a decision model






33. 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






34. Goods partially worked on but not yet completed






35. 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






36. 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






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






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






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






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






41. Goods partially worked on but not yet completed






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






43. Contribution margin per unit divided by selling price






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






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






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






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






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






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






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