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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. 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






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






3. 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.






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






5. A grouping of individual cost items






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






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






8. 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






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






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






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






12. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold






13. 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






14. 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






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






16. All manufacturing costs other than direct material costs






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






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






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






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






21. 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






22. Total revenues minus total variable costs






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






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






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






26. Goods partially worked on but not yet completed






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






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






29. Selling price minus the variable cost per unit






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






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






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






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






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






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






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






37. Assignment of indirect costs to a particular cost object






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






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






40. 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.






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






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






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






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






45. 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






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






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






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






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






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