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






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






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






4. Goods partially worked on but not yet completed






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






6. Selling price minus the variable cost per unit






7. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin






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






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






10. 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






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






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






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






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






15. 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






16. 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.






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






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






19. All manufacturing costs other than direct material costs






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






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






22. All direct manufacturing costs






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






24. Goods completed - but not yet sold






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






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






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






28. 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






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






30. 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






31. 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.






32. Total revenues minus total variable costs






33. Likelihood or chance that an event will occur






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






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






36. 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 allocates the indirect costs based on the actual indirect-cost rates times the actual quantitie






37. Contribution margin per unit divided by selling price






38. 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






39. Sum of the costs assigned to a product for a specific purpose






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






41. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost






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






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






44. Anything for which a measurement of costs is desired






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






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






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






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






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






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