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






2. 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






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






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






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






6. 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






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






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






9. Gross margin divided by revenues






10. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool






11. Contribution margin per unit divided by selling price






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






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






14. 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






15. Goods completed - but not yet sold






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






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






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






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






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






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






22. Goods partially worked on but not yet completed






23. 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.






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






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






26. All direct manufacturing costs






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






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






29. A grouping of individual cost items






30. Contribution margin per unit divided by selling price






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






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






33. A possible relevant occurrence in a decision model






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






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






36. All manufacturing costs other than direct material costs






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






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






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






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






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






42. 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






43. 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






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






45. The costs of activities undertaken to support individual services






46. 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






47. Anything for which a measurement of costs is desired






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






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






50. 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