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






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






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






4. Include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in a economically feasible way






5. Cost that changes in total in proportion to changes in the related level of total activity or volume






6. Likelihood or chance that an event will occur






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






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






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






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






11. Contribution margin per unit divided by selling price






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






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






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






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






16. 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.






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






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






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






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






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






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






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 allocates the indirect costs based on the actual indirect-cost rates times the actual quantitie






24. 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






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






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






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






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






29. Companies that provide services or intangible products to their customers






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






31. 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






32. Contribution margin per unit divided by selling price






33. A grouping of individual cost items






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






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






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. Total revenues minus total variable costs






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






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






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






41. Objective that can be quantified in a decision model






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






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






44. All direct manufacturing costs






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






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






47. Selling price minus the variable cost per unit






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






49. General term that encompasses both (1) tracing accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated costs that have an indirect relationship to a cost object






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