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Test your basic knowledge |
Cost Accounting Vocab
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Subject
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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. Sum of the costs assigned to a product for a specific purpose
inventoriable costs
actual indirect-cost rate
adjusted allocation-rate approach
product costs
2. Amount by which budgeted (or actual) revenues exceed breakeven revenues
service-sustaining costs
uncertainty
contribution income statement
margin of safety
3. 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
indirect costs of a cost object
contribution margin percentage
direct material costs
outcomes
4. Direct materials in stock and awaiting use in the manufacturing process
cost tracing
overtime premium
cost allocation
direct materials inventory
5. The costs of activities performed on each individual unit of a product or service
output unit-level costs
service-sector companies
work-in-process inventory
contribution margin percentage
6. Shows how changes in the quantity of units sold affect operating income
factory overhead costs
PV graph
uncertainty
normal costing
7. Collection of cost data in some organized way by means of an accounting system
cost accumulation
operating income
process-costing system
event
8. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
cost-application base
job
inventoriable costs
job-costing system
9. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
contribution margin
normal costing
adjusted allocation-rate approach
underallocated indirect costs
10. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin
direct materials inventory
operating leverage
cost-application base
product-cost cross-subsidization
11. 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.
factory overhead costs
process-costing system
cost allocation
materials-requisition record
12. 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
cost driver
contribution income statement
cost assignment
net income
13. All direct manufacturing costs
service-sustaining costs
prime costs
cost assignment
activity-based management (ABM)
14. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
product-sustaining costs
cost pool
budgeted indirect-cost rate
source document
15. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
inventoriable costs
product overcosting
work in progress
actual cost
16. Cost-allocation base when the cost object is a job - product - or customer
output unit-level costs
product overcosting
cost-application base
actual costing
17. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
uncertainty
probability distribution
product-cost cross-subsidization
service-sustaining costs
18. Costing system in which the cost object is masses of identical or similar units of a product or service
finished goods inventory
period costs
manufacturing overhead applied
process-costing system
19. Gross margin divided by revenues
revenues
job
contribution income statement
gross margin percentage
20. 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.
cost-application base
refined costing system
manufacturing overhead costs
sensitivty analysis
21. Anything for which a measurement of costs is desired
cost pool
service-sustaining costs
output unit-level costs
cost object
22. Contribution margin per unit divided by selling price
outcomes
actual cost
manufacturing overhead allocated
contribution margin ratio
23. A grouping of individual cost items
cost pool
variable cost
finished goods inventory
manufacturing-sector companies
24. Objective that can be quantified in a decision model
materials-requisition record
contribution margin
choice criterion
job-costing system
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
expected value
indirect costs of a cost object
direct manufacturing labor costs
inventoriable costs
26. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
decision table
relevant range
indirect costs of a cost object
facility-sustaining costs
27. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
manufacturing overhead applied
activity-based management (ABM)
cost tracing
underabsorbed indirect costs
28. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
operating leverage
job-cost record
revenues
cost
29. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
average cost
activity
batch-level costs
budgeted indirect-cost rate
30. Goods partially worked on but not yet completed
budgeted indirect-cost rate
work-in-process inventory
underabsorbed indirect costs
expected value
31. Companies that purchase materials and components and convert them into various finished goods
manufacturing-sector companies
overallocated indirect costs
operating leverage
process-costing system
32. Goods partially worked on but not yet completed
cost of goods manufactured
product undercosting
work in progress
activity
33. 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
indirect costs of a cost object
source document
probability
direct manufacturing labor costs
34. Contribution margin divided by operating income at any given level of sales
prime costs
decision table
cost allocation
degree of operating leverage
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.
merchandising-sector companies
output unit-level costs
unit cost
indirect manufacturing costs
36. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
contribution margin
expected value
budgeted cost
cost pool
37. Contribution margin per unit divided by selling price
decision table
contribution margin percentage
cost hierarchy
actual cost
38. Predicted economic results of the various possible combinations of actions and events in a decision model
service-sustaining costs
outcomes
net income
cost pool
39. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
facility-sustaining costs
cost-volume-profit (CVP) analysis
expected value
breakeven point (BEP)
40. 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
degree of operating leverage
sensitivty analysis
event
indirect costs of a cost object
41. 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
revenue driver
activity-based costing (ABC)
outcomes
overabsorbed indirect costs
42. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
net income
overapplied indirect costs
PV graph
underapplied indirect costs
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
budgeted indirect-cost rate
manufacturing overhead applied
finished goods inventory
expected monetary value
44. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
budgeted indirect-cost rate
uncertainty
gross margin percentage
operating income
45. Total revenues minus total variable costs
contribution income statement
contribution margin
manufacturing-sector companies
relevant range
46. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way
inventoriable costs
indirect costs of a cost object
cost accumulation
job-cost sheet
47. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
cost hierarchy
adjusted allocation-rate approach
overtime premium
expected monetary value
48. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
budgeted cost
probability distribution
variable cost
actual costing
49. Likelihood or chance that an event will occur
probability
contribution margin per unit
degree of operating leverage
cost assignment
50. 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
idle time
underapplied indirect costs
refined costing system
cost tracing