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






2. 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






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






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






5. 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






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






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






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 performed on each individual unit of a product or service






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






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






12. 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






13. 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






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






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






16. A grouping of individual cost items






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






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






19. Goods completed - but not yet sold






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






21. Contribution margin per unit divided by selling price






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






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






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






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






26. 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






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






28. Predicted economic results of the various possible combinations of actions and events in a decision model






29. 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.






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






31. Objective that can be quantified in a decision model






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






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






34. 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






35. Selling price minus the variable cost per unit






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






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






38. The costs of activities undertaken to support individual services






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






40. 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.






41. 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






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






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






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






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






46. 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






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






48. Cost of goods brought to completion - whether they were started before or during the current accounting period






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






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






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