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






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






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






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






5. A grouping of individual cost items






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






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






8. 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.






9. Goods partially worked on but not yet completed






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






11. 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






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






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






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






15. 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






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






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






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






19. Gross margin divided by revenues






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






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






22. Assignment of indirect costs to a particular cost object






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






24. Goods completed - but not yet sold






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






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






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






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






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






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






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






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






33. Acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods) - and that can be traced to the costt object in an economically feasible way






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






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






36. 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






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






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






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






40. 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






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






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






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






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






45. Direct materials in stock and awaiting use in the manufacturing process






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






47. 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






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






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






50. Contribution margin per unit divided by selling price