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






2. Anything for which a measurement of costs is desired






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






4. Sum of the costs assigned to a product for a specific purpose






5. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates






6. 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






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






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






9. 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.






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






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






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. Companies that provide services or intangible products to their customers






14. Goods partially worked on but not yet completed






15. Contribution margin per unit divided by selling price






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






17. Likelihood or chance that an event will occur






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






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






20. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






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






22. Gross margin divided by revenues






23. 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






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






25. The costs of activities undertaken to support individual services






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






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






28. Resource sacrificed or forgone to achieve a specific objective






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






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






31. A possible relevant occurrence in a decision model






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






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






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






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






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






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






38. Costing system in which the cost object is a unit or multiple units of a distinct product or service called a job






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






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






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






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






43. The costs of activities undertaken to support individual products regardless of the number of units or batches in which the units are produced






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






45. The costs of activities that cannot be traced to individual products or services but support the organization as a whole






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






47. Collection of cost data in some organized way by means of an accounting system






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






49. Selling price minus the variable cost per unit






50. All direct manufacturing costs