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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. Goods completed - but not yet sold
breakeven point (BEP)
actual costing
expected value
finished goods inventory
2. Companies that purchase and then sell tangible products without changing their basic form
cost accumulation
merchandising-sector companies
facility-sustaining costs
job-cost sheet
3. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department
materials-requisition record
factory overhead costs
operating leverage
product-sustaining costs
4. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
job-cost sheet
actual indirect-cost rate
underabsorbed indirect costs
manufacturing overhead applied
5. Goods partially worked on but not yet completed
job
work in progress
underallocated indirect costs
relevant range
6. Companies that provide services or intangible products to their customers
budgeted cost
materials-requisition record
service-sector companies
output unit-level costs
7. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
expected value
product undercosting
contribution margin per unit
direct manufacturing labor costs
8. Resource sacrificed or forgone to achieve a specific objective
contribution margin ratio
cost
direct materials inventory
sales mix
9. Gross margin divided by revenues
variable cost
gross margin percentage
manufacturing overhead costs
job-cost record
10. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
operating income
materials-requisition record
expected value
actual cost
11. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
gross margin percentage
expected monetary value
contribution margin percentage
job-costing system
12. Method of management decision-making that uses activity-based costing information to improve customer satisfaction and profitability
refined costing system
conversion costs
activity-based management (ABM)
variable cost
13. Selling price minus the variable cost per unit
cost driver
activity-based management (ABM)
batch-level costs
contribution margin per unit
14. 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
job
idle time
job-cost record
relevant range
15. All direct manufacturing costs
cost object
sensitivty analysis
prime costs
product undercosting
16. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
event
overallocated indirect costs
facility-sustaining costs
budgeted cost
17. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
source document
labor-time record
sensitivty analysis
idle time
18. Cost that changes in total in proportion to changes in the related level of total activity or volume
work in progress
overabsorbed indirect costs
job-cost record
variable cost
19. An event - task - or unit of work with a specified purpose
operating income
activity
facility-sustaining costs
cost pool
20. Amount by which budgeted (or actual) revenues exceed breakeven revenues
margin of safety
merchandising-sector companies
overabsorbed indirect costs
direct costs of a cost object
21. 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
inventoriable costs
cost object
actual indirect-cost rate
budgeted cost
22. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
adjusted allocation-rate approach
idle time
overallocated indirect costs
product-cost cross-subsidization
23. Likelihood or chance that an event will occur
facility-sustaining costs
probability
choice criterion
relevant range
24. The costs of activities performed on each individual unit of a product or service
output unit-level costs
actual costing
adjusted allocation-rate approach
manufacturing-sector companies
25. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
expected value
process-costing system
fixed cost
underallocated indirect costs
26. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin
cost tracing
expected value
operating leverage
cost accumulation
27. A product consumes a low level of resources but is reported to have a high cost per unit
manufacturing overhead costs
manufacturing overhead applied
product overcosting
merchandising-sector companies
28. 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
manufacturing overhead costs
refined costing system
contribution income statement
direct materials inventory
29. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
contribution margin ratio
product overcosting
overapplied indirect costs
indirect costs of a cost object
30. The costs of activities undertaken to support individual services
cost-application base
service-sustaining costs
operating leverage
event
31. Cost computed by dividing total cost by the number of units
cost object
unit cost
contribution margin
actual cost
32. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
activity-based costing (ABC)
overallocated indirect costs
choice criterion
probability distribution
33. Sum of the costs assigned to a product for a specific purpose
unit cost
variable cost
product costs
operating income
34. 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
activity-based costing (ABC)
net income
contribution margin percentage
cost object
35. Assignment of indirect costs to a particular cost object
direct materials inventory
underabsorbed indirect costs
cost allocation
actual cost
36. Cost computed by dividing total cost by the number of units
overallocated indirect costs
average cost
contribution margin per unit
operating leverage
37. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
product-sustaining costs
normal costing
overtime premium
decision table
38. Describes the assignment of direct costs to a particular cost object
cost tracing
inventoriable costs
underabsorbed indirect costs
fixed cost
39. Companies that purchase materials and components and convert them into various finished goods
cost-allocation base
contribution margin percentage
manufacturing-sector companies
gross margin percentage
40. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost of goods manufactured
PV graph
uncertainty
cost driver
41. Contribution margin per unit divided by selling price
degree of operating leverage
gross margin percentage
overabsorbed indirect costs
contribution margin ratio
42. 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
sensitivty analysis
contribution income statement
variable cost
job-cost record
43. Contribution margin divided by operating income at any given level of sales
product-sustaining costs
variable cost
budgeted indirect-cost rate
degree of operating leverage
44. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
manufacturing-sector companies
source document
underallocated indirect costs
gross margin percentage
45. Anything for which a measurement of costs is desired
product costs
cost tracing
adjusted allocation-rate approach
cost object
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.
indirect manufacturing costs
merchandising-sector companies
PV graph
materials-requisition record
47. All costs in the income statement other than cost of goods sold
cost allocation
period costs
cost driver
cost
48. Quantities of various products or services that constitute total unit sales
sales mix
sensitivty analysis
cost accumulation
cost-allocation base
49. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
finished goods inventory
contribution margin per unit
idle time
overabsorbed indirect costs
50. A possible relevant occurrence in a decision model
direct material costs
event
cost tracing
facility-sustaining costs