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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. 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






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






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






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






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






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






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






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






9. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates






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






11. Resource sacrificed or forgone to achieve a specific objective






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






13. The possibility that an actual amount will deviate from an expected amount






14. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)






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






16. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur






17. 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.






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






19. Goods partially worked on but not yet completed






20. All manufacturing costs other than direct material costs






21. Likelihood or chance that an event will occur






22. 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






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






24. 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.






25. Total revenues minus total variable costs






26. Selling price minus the variable cost per unit






27. The costs of activities undertaken to support individual services






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






29. Contribution margin per unit divided by selling price






30. Summary of alternative actions - events - outcomes - probabilities of events in a decision model






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






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






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






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






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






36. 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.






37. 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






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






39. Assignment of indirect costs to a particular cost object






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






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






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






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






44. 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






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






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






47. Describes the assignment of direct costs to a particular cost object






48. A grouping of individual cost items






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






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







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