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Test your basic knowledge |
Cost Accounting Vocab
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Subject
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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. All costs in the income statement other than cost of goods sold
activity
period costs
cost hierarchy
adjusted allocation-rate approach
2. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
period costs
job-costing system
margin of safety
inventoriable costs
3. Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates
overallocated indirect costs
activity
contribution margin per unit
overtime premium
4. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
breakeven point (BEP)
activity-based costing (ABC)
actual indirect-cost rate
cost-volume-profit (CVP) analysis
5. A grouping of individual cost items
cost pool
direct material costs
direct manufacturing labor costs
cost hierarchy
6. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
idle time
actual cost
overabsorbed indirect costs
expected value
7. Cost computed by dividing total cost by the number of units
average cost
underapplied indirect costs
product undercosting
operating leverage
8. 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.
factory overhead costs
activity-based management (ABM)
process-costing system
cost-allocation base
9. Goods partially worked on but not yet completed
work in progress
product costs
source document
product-sustaining costs
10. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
direct material costs
probability
idle time
merchandising-sector companies
11. 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
proration
indirect manufacturing costs
uncertainty
refined costing system
12. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
contribution income statement
variable cost
underallocated indirect costs
overtime premium
13. An event - task - or unit of work with a specified purpose
finished goods inventory
activity
contribution margin percentage
choice criterion
14. Costing outcome where one undercosted (overcosted) product results in at least one other product being overcosted (undercosted)
unit cost
sensitivty analysis
cost-application base
product-cost cross-subsidization
15. 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
cost object
probability distribution
operating income
actual costing
16. A variable - such as volume - that casually affects revenues
job
cost accumulation
revenue driver
operating leverage
17. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
job-cost record
work in progress
cost-allocation base
contribution income statement
18. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
net income
overapplied indirect costs
job-cost sheet
variable cost
19. Gross margin divided by revenues
gross margin percentage
cost driver
revenue driver
expected monetary value
20. Describes the assignment of direct costs to a particular cost object
job-costing system
cost tracing
event
contribution margin ratio
21. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
conversion costs
cost
net income
source document
22. Assignment of indirect costs to a particular cost object
actual costing
activity-based management (ABM)
output unit-level costs
cost allocation
23. The costs of activities that cannot be traced to individual products or services but support the organization as a whole
facility-sustaining costs
operating income
fixed cost
product overcosting
24. Goods completed - but not yet sold
underabsorbed indirect costs
finished goods inventory
outcomes
underallocated indirect costs
25. A product consumes a high level of resources but is reported to have a low cost per unit
work in progress
product-cost cross-subsidization
relevant range
product undercosting
26. Costing system in which the cost object is masses of identical or similar units of a product or service
underapplied indirect costs
process-costing system
direct materials inventory
outcomes
27. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overallocated indirect costs
revenue driver
contribution income statement
budgeted cost
28. The costs of activities related to a group of units of products or services rather than to each individual unit of product or service
contribution margin ratio
batch-level costs
cost assignment
conversion costs
29. Companies that purchase and then sell tangible products without changing their basic form
sensitivty analysis
cost-volume-profit (CVP) analysis
gross margin percentage
merchandising-sector companies
30. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
indirect manufacturing costs
job-cost sheet
adjusted allocation-rate approach
choice criterion
31. Source document that contains information about the amount of labor time used for a specific job in a specific department
merchandising-sector companies
contribution income statement
labor-time record
outcomes
32. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
expected monetary value
direct costs of a cost object
job-cost record
contribution margin ratio
33. 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
product-cost cross-subsidization
direct material costs
direct costs of a cost object
sensitivty analysis
34. Shows how changes in the quantity of units sold affect operating income
cost
margin of safety
PV graph
budgeted cost
35. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
inventoriable costs
cost-allocation base
actual indirect-cost rate
outcomes
36. 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
service-sustaining costs
expected monetary value
sensitivty analysis
margin of safety
37. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
direct costs of a cost object
actual indirect-cost rate
actual costing
cost driver
38. Companies that purchase materials and components and convert them into various finished goods
prime costs
normal costing
adjusted allocation-rate approach
manufacturing-sector companies
39. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
operating income
contribution income statement
facility-sustaining costs
job
40. 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
work-in-process inventory
relevant range
choice criterion
unit cost
41. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
budgeted indirect-cost rate
revenues
direct material costs
manufacturing overhead allocated
42. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
activity-based management (ABM)
sales mix
product undercosting
product-sustaining costs
43. Predicted economic results of the various possible combinations of actions and events in a decision model
manufacturing overhead costs
expected monetary value
outcomes
overabsorbed indirect costs
44. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department
proration
cost tracing
materials-requisition record
actual indirect-cost rate
45. Direct materials in stock and awaiting use in the manufacturing process
expected monetary value
direct materials inventory
cost allocation
cost
46. Cost-allocation base when the cost object is a job - product - or customer
event
activity
unit cost
cost-application base
47. 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
activity-based costing (ABC)
output unit-level costs
choice criterion
inventoriable costs
48. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
factory overhead costs
expected value
expected monetary value
probability
49. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
outcomes
conversion costs
budgeted indirect-cost rate
refined costing system
50. Contribution margin per unit divided by selling price
contribution margin ratio
product costs
uncertainty
indirect costs of a cost object