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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. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
direct costs of a cost object
manufacturing overhead costs
net income
cost accumulation
2. Contribution margin per unit divided by selling price
contribution margin percentage
probability
contribution income statement
expected value
3. 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.
overapplied indirect costs
activity-based management (ABM)
factory overhead costs
manufacturing overhead costs
4. Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost
budgeted cost
output unit-level costs
cost pool
direct material costs
5. 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
job-costing system
job-cost sheet
activity-based costing (ABC)
overabsorbed indirect costs
6. All direct manufacturing costs
event
product undercosting
prime costs
cost assignment
7. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
job-cost record
activity-based management (ABM)
contribution income statement
manufacturing overhead applied
8. Source document that records and accumulates all the costs assigned to a specific job - starting when work begins
budgeted indirect-cost rate
job-cost record
cost driver
factory overhead costs
9. Source documents that contains information about the cost of direct materials used on a specific job and in a specific department
cost assignment
average cost
product costs
materials-requisition record
10. Total revenues from operations minus cost of goods sold and operating costs (excluding interest expense and income taxes)
relevant range
operating income
direct materials inventory
activity-based costing (ABC)
11. Anything for which a measurement of costs is desired
labor-time record
cost assignment
direct material costs
cost object
12. An original record that supports journal entries in an accounting system
event
source document
expected monetary value
fixed cost
13. Cost computed by dividing total cost by the number of units
unit cost
product overcosting
service-sustaining costs
fixed cost
14. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
underapplied indirect costs
cost-allocation base
job-costing system
underabsorbed indirect costs
15. Cost-allocation base when the cost object is a job - product - or customer
direct manufacturing labor costs
idle time
cost-volume-profit (CVP) analysis
cost-application base
16. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero
outcomes
underapplied indirect costs
normal costing
breakeven point (BEP)
17. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base
budgeted indirect-cost rate
manufacturing overhead applied
gross margin percentage
contribution margin
18. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job
job-costing system
net income
cost-allocation base
underapplied indirect costs
19. Cost that changes in total in proportion to changes in the related level of total activity or volume
direct costs of a cost object
sensitivty analysis
variable cost
manufacturing-sector companies
20. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced
breakeven point (BEP)
overtime premium
job-costing system
product-sustaining costs
21. A unit or multiple units of a distinct product or service
job
product-sustaining costs
average cost
net income
22. Costing system in which the cost object is masses of identical or similar units of a product or service
normal costing
cost-allocation base
process-costing system
revenues
23. Assignment of indirect costs to a particular cost object
revenues
cost allocation
product-cost cross-subsidization
actual indirect-cost rate
24. Describes the assignment of direct costs to a particular cost object
product overcosting
cost tracing
cost pool
refined costing system
25. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
activity
decision table
revenues
operating income
26. 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
probability
probability distribution
cost assignment
manufacturing-sector companies
27. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume
fixed cost
revenues
work-in-process inventory
product-sustaining costs
28. Quantities of various products or services that constitute total unit sales
cost allocation
sales mix
product-cost cross-subsidization
job
29. 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.
adjusted allocation-rate approach
indirect manufacturing costs
contribution margin per unit
manufacturing-sector companies
30. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
overabsorbed indirect costs
choice criterion
actual cost
sales mix
31. 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
manufacturing overhead applied
factory overhead costs
product undercosting
decision table
32. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
manufacturing-sector companies
probability distribution
overallocated indirect costs
net income
33. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
uncertainty
expected monetary value
service-sector companies
underapplied indirect costs
34. 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
average cost
budgeted cost
prime costs
actual costing
35. A possible relevant occurrence in a decision model
event
revenues
fixed cost
sensitivty analysis
36. A variable - such as volume - that casually affects revenues
expected monetary value
inventoriable costs
overabsorbed indirect costs
revenue driver
37. Likelihood or chance that an event will occur
expected monetary value
job
probability
product-cost cross-subsidization
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
cost assignment
sensitivty analysis
contribution margin per unit
revenues
39. A grouping of individual cost items
cost
actual indirect-cost rate
source document
cost pool
40. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
product-cost cross-subsidization
idle time
probability distribution
proration
41. 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
product overcosting
breakeven point (BEP)
contribution margin percentage
42. A product consumes a low level of resources but is reported to have a high cost per unit
cost driver
actual costing
product overcosting
probability
43. Amount by which budgeted (or actual) revenues exceed breakeven revenues
cost-volume-profit (CVP) analysis
adjusted allocation-rate approach
margin of safety
indirect manufacturing costs
44. 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
gross margin percentage
event
probability distribution
direct manufacturing labor costs
45. The costs of activities undertaken to support individual services
relevant range
event
facility-sustaining costs
service-sustaining costs
46. Contribution margin divided by operating income at any given level of sales
degree of operating leverage
output unit-level costs
normal costing
cost of goods manufactured
47. Sum of the costs assigned to a product for a specific purpose
output unit-level costs
product costs
revenues
process-costing system
48. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period.
actual cost
underabsorbed indirect costs
cost tracing
adjusted allocation-rate approach
49. Companies that provide services or intangible products to their customers
contribution income statement
service-sector companies
indirect manufacturing costs
cost driver
50. Shows how changes in the quantity of units sold affect operating income
cost of goods manufactured
finished goods inventory
PV graph
cost object