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






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






3. 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






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






5. 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






6. 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






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






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






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






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






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






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






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






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






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






16. Anything for which a measurement of costs is desired






17. 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






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






19. Total revenues minus total variable costs






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






21. Gross margin divided by revenues






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






23. 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 that allocates indirect costs based on the budgeted indirect-cost rates times the actual quanti






24. 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






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






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






27. 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.






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






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






30. 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






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






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






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






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






35. Objective that can be quantified in a decision model






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






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






38. 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






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






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






41. 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.






42. Resource sacrificed or forgone to achieve a specific objective






43. Selling price minus the variable cost per unit






44. Goods partially worked on but not yet completed






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






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






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






48. A possible relevant occurrence in a decision model






49. All manufacturing costs other than direct material costs






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