Test your basic knowledge |

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. Contribution margin per unit divided by selling price






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






3. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job






4. 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






5. 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






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






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






8. 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






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






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






11. All direct manufacturing costs






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






13. 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






14. A possible relevant occurrence in a decision model






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






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






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






18. Objective that can be quantified in a decision model






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






20. Resource sacrificed or forgone to achieve a specific objective






21. Gross margin divided by revenues






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






23. Likelihood or chance that an event will occur






24. A grouping of individual cost items






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






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






27. 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






28. Goods partially worked on but not yet completed






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






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






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






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






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






34. 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.






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






36. Selling price minus the variable cost per unit






37. 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






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






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






40. 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






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






42. Goods partially worked on but not yet completed






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






44. Contribution margin per unit divided by selling price






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






46. 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






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






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






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






50. 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