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






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






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






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






5. All manufacturing costs other than direct material costs






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






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






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






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






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






11. Describes the assignment of direct costs to a particular cost object






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






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






14. Selling price minus the variable cost per unit






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






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






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






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






19. 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






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






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






22. Anything for which a measurement of costs is desired






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






24. 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.






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






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






27. The possibility that an actual amount will deviate from an expected amount






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






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






30. Goods completed - but not yet sold






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






32. 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.






33. 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






34. Gross margin divided by revenues






35. Goods partially worked on but not yet completed






36. 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






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






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






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






40. Objective that can be quantified in a decision model






41. Resource sacrificed or forgone to achieve a specific objective






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






43. A possible relevant occurrence in a decision model






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






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






46. 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






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






48. 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






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






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