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






2. A grouping of individual cost items






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






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






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






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






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






8. Objective that can be quantified in a decision model






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






10. Total revenues minus total variable costs






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






12. Assignment of indirect costs to a particular cost object






13. 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






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






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






16. A possible relevant occurrence in a decision model






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






18. Anything for which a measurement of costs is desired






19. 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






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






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






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






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






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






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






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






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






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






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






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






31. 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






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






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






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






35. Selling price minus the variable cost per unit






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






37. Contribution margin per unit divided by selling price






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






39. Goods completed - but not yet sold






40. Costing system in which the cost object is masses of identical or similar units of a product or service






41. Likelihood or chance that an event will occur






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






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






44. Resource sacrificed or forgone to achieve a specific objective






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






46. 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.






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






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






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






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