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






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






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






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






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






6. Anything for which a measurement of costs is desired






7. 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.






8. A grouping of individual cost items






9. All manufacturing costs other than direct material costs






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






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






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






13. Goods partially worked on but not yet completed






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






15. 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






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






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






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






19. 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






20. Resource sacrificed or forgone to achieve a specific objective






21. Contribution margin per unit divided by selling price






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






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






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






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






26. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin






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






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. Likelihood or chance that an event will occur






30. Selling price minus the variable cost per unit






31. 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






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






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






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






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






36. The costs of activities performed on each individual unit of a product or service






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






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






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






40. 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






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






42. 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






43. 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.






44. Gross margin divided by revenues






45. 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






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






47. 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






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






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






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