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






2. Likelihood or chance that an event will occur






3. Selling price minus the variable cost per unit






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






5. Anything for which a measurement of costs is desired






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






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






8. Assignment of indirect costs to a particular cost object






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






10. 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.






11. 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






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






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






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






15. 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






16. 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






17. 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






18. Resource sacrificed or forgone to achieve a specific objective






19. 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






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






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






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






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






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






25. A grouping of individual cost items






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






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






28. Total revenues minus total variable costs






29. 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






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






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






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






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






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






35. 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.






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






37. 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






38. 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






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






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






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






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






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






44. 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






45. 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.






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






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






48. Goods partially worked on but not yet completed






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






50. 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