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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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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. Companies that purchase and then sell tangible products without changing their basic form
uncertainty
actual costing
direct manufacturing labor costs
merchandising-sector companies
2. The costs of activities undertaken to support individual services
output unit-level costs
service-sector companies
service-sustaining costs
fixed cost
3. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
period costs
facility-sustaining costs
normal costing
net income
4. A product consumes a low level of resources but is reported to have a high cost per unit
revenue driver
job-cost sheet
contribution margin ratio
product overcosting
5. Cost of goods brought to completion - whether they were started before or during the current accounting period
event
revenues
cost of goods manufactured
batch-level costs
6. An event - task - or unit of work with a specified purpose
activity
source document
process-costing system
job-cost record
7. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
actual cost
contribution margin ratio
adjusted allocation-rate approach
contribution income statement
8. Total revenues minus total variable costs
manufacturing overhead costs
fixed cost
contribution margin
activity
9. Quantities of various products or services that constitute total unit sales
underallocated indirect costs
cost assignment
net income
sales mix
10. All manufacturing costs other than direct material costs
manufacturing overhead applied
sensitivty analysis
contribution margin ratio
conversion costs
11. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
product-sustaining costs
degree of operating leverage
job-cost record
operating income
12. 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.
contribution margin
direct materials inventory
indirect manufacturing costs
contribution margin percentage
13. All costs in the income statement other than cost of goods sold
contribution income statement
cost accumulation
job-costing system
period costs
14. The costs of activities performed on each individual unit of a product or service
net income
output unit-level costs
margin of safety
choice criterion
15. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
breakeven point (BEP)
cost pool
manufacturing overhead applied
cost-allocation base
16. Describes the assignment of direct costs to a particular cost object
direct materials inventory
sales mix
activity-based costing (ABC)
cost tracing
17. Cost-allocation base when the cost object is a job - product - or customer
cost-application base
gross margin percentage
contribution margin per unit
revenues
18. Cost computed by dividing total cost by the number of units
cost of goods manufactured
decision table
revenues
unit cost
19. 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 assignment
inventoriable costs
finished goods inventory
manufacturing overhead allocated
20. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
prime costs
contribution margin percentage
cost hierarchy
budgeted indirect-cost rate
21. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
underapplied indirect costs
refined costing system
manufacturing-sector companies
unit cost
22. 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
cost hierarchy
cost assignment
direct manufacturing labor costs
cost pool
23. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
job-cost record
expected monetary value
output unit-level costs
batch-level costs
24. Contribution margin per unit divided by selling price
contribution margin percentage
product undercosting
inventoriable costs
overabsorbed indirect costs
25. Source document that contains information about the amount of labor time used for a specific job in a specific department
work-in-process inventory
labor-time record
indirect costs of a cost object
cost-allocation base
26. Cost that changes in total in proportion to changes in the related level of total activity or volume
breakeven point (BEP)
product undercosting
job
variable cost
27. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
activity-based management (ABM)
overtime premium
net income
job-cost sheet
28. An original record that supports journal entries in an accounting system
expected monetary value
cost accumulation
job
source document
29. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
overtime premium
variable cost
labor-time record
breakeven point (BEP)
30. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
cost assignment
net income
batch-level costs
underabsorbed indirect costs
31. Contribution margin divided by operating income at any given level of sales
cost hierarchy
contribution margin percentage
degree of operating leverage
job-cost sheet
32. 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
service-sector companies
refined costing system
overapplied indirect costs
expected value
33. A unit or multiple units of a distinct product or service
outcomes
manufacturing overhead applied
output unit-level costs
job
34. Sum of the costs assigned to a product for a specific purpose
contribution margin ratio
labor-time record
product costs
uncertainty
35. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
cost tracing
idle time
proration
manufacturing overhead applied
36. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
underallocated indirect costs
fixed cost
breakeven point (BEP)
indirect manufacturing costs
37. 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
cost hierarchy
cost pool
underabsorbed indirect costs
gross margin percentage
38. Anything for which a measurement of costs is desired
cost assignment
cost object
PV graph
batch-level costs
39. A grouping of individual cost items
product overcosting
actual indirect-cost rate
cost pool
expected value
40. Cost computed by dividing total cost by the number of units
service-sustaining costs
indirect costs of a cost object
direct manufacturing labor costs
average cost
41. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
job-cost sheet
manufacturing overhead applied
direct materials inventory
process-costing system
42. 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
factory overhead costs
period costs
product undercosting
relevant range
43. Assignment of indirect costs to a particular cost object
cost of goods manufactured
work-in-process inventory
cost allocation
source document
44. Predicted economic results of the various possible combinations of actions and events in a decision model
outcomes
period costs
cost assignment
overabsorbed indirect costs
45. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
normal costing
contribution margin ratio
actual indirect-cost rate
indirect costs of a cost object
46. Resource sacrificed or forgone to achieve a specific objective
service-sustaining costs
output unit-level costs
choice criterion
cost
47. 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
direct material costs
job-cost record
manufacturing overhead allocated
budgeted cost
48. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
direct costs of a cost object
fixed cost
facility-sustaining costs
uncertainty
49. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
activity-based costing (ABC)
cost tracing
operating income
job-cost record
50. Costing system in which the cost object is masses of identical or similar units of a product or service
operating income
cost tracing
variable cost
process-costing system