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






2. 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.






3. Contribution margin per unit divided by selling price






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






5. Quantity of output sold at which total revenues equal total costs - that is where the operating income is zero






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






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






8. Gross margin divided by revenues






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






10. 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






11. Cost that remains unchanged in total for a given time period - despite wide changes in the related level of total activity or volume






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






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






14. Goods partially worked on but not yet completed






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






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






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






18. Selling price minus the variable cost per unit






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






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






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






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






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






24. All costs in the income statement other than cost of goods sold






25. An event - task - or unit of work with a specified purpose






26. 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






27. 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






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






29. Goods partially worked on but not yet completed






30. 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






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






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






33. Total revenues minus total variable costs






34. Objective that can be quantified in a decision model






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






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






37. All manufacturing costs other than direct material costs






38. Companies that provide services or intangible products to their customers






39. Assignment of indirect costs to a particular cost object






40. Companies that purchase materials and components and convert them into various finished goods






41. 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






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






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






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






46. 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.






47. 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.






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






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






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