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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. A possible relevant occurrence in a decision model






2. A variable - such as volume - that casually affects revenues






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






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






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






6. Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way






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






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






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






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






11. 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






12. Gross margin divided by revenues






13. Likelihood or chance that an event will occur






14. Contribution margin per unit divided by selling price






15. All manufacturing costs other than direct material costs






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






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






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






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






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






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






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






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






24. 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






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






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






27. 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






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






29. 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






30. Assignment of indirect costs to a particular cost object






31. Anything for which a measurement of costs is desired






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






33. The costs of activities undertaken to support individual services






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






35. Examines the behavior of total revenues - total costs - and operating income as changes occur in the units sold - the selling price - the variable cost per unit - or the fixed costs of a product






36. 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






37. 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






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






39. Goods partially worked on but not yet completed






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






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






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






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






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






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






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






47. All direct manufacturing costs






48. 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






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






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