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Cost Accounting Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. The possibility that an actual amount will deviate from an expected amount






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






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






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






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






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






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






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






9. 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.






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






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






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






13. 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






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






15. 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






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






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






18. Total revenues minus total variable costs






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






20. 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






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






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






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






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






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






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






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






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






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






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






31. 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.






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






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






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






36. 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.






37. 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






38. Goods partially worked on but not yet completed






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






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






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






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






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






44. 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






45. 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






46. Anything for which a measurement of costs is desired






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






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






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






50. Likelihood or chance that an event will occur







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