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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. 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






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






3. A possible relevant occurrence in a decision model






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






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






6. 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






7. All manufacturing costs other than direct material costs






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






9. Shows how changes in the quantity of units sold affect operating income






10. The costs of activities undertaken to support individual services






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






12. 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






13. 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






14. Budgeted annual indirect costs in a cost pool divided by the budgeted annual quanttity of the cost allocation base






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






16. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like






17. Examines the behavior of total revenues - total costs - and operating income as changes occur in the units sold - the selling price - the variable cost per unit - or the fixed costs of a product






18. Total revenues minus total variable costs






19. 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






20. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way






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






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






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






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






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






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






27. An original record that supports journal entries in an accounting system






28. 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






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.






30. 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.






31. Assignment of indirect costs to a particular cost object






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






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






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






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






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






37. Objective that can be quantified in a decision model






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






39. 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






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






41. Quantities of various products or services that constitute total unit sales






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






43. Likelihood or chance that an event will occur






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






45. All direct manufacturing costs






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






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






48. Goods partially worked on but not yet completed






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






50. Contribution margin divided by operating income at any given level of sales