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Test your basic knowledge |
Cost Accounting Vocab
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Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
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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 grouping of individual cost items
sensitivty analysis
uncertainty
sales mix
cost pool
2. Resource sacrificed or forgone to achieve a specific objective
cost
proration
facility-sustaining costs
service-sector companies
3. 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
conversion costs
net income
indirect costs of a cost object
relevant range
4. Income statement that groups costs into variable costs and fixed costs to highlight the contribution margin
contribution income statement
output unit-level costs
cost
inventoriable costs
5. Describes the assignment of direct costs to a particular cost object
direct material costs
cost tracing
operating income
inventoriable costs
6. Weighted average of the outcomes of a decision with the probability of each outcome serving as the weight
unit cost
contribution margin
expected monetary value
activity-based management (ABM)
7. The costs of activities performed on each individual unit of a product or service
cost accumulation
revenue driver
output unit-level costs
relevant range
8. Operating income plus nonoperating revenues (such as interest revenue) minus nonoperating costs (such as interest cost) minus income taxes
job-cost sheet
overapplied indirect costs
net income
labor-time record
9. Goods partially worked on but not yet completed
idle time
finished goods inventory
underabsorbed indirect costs
work in progress
10. 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
budgeted indirect-cost rate
actual indirect-cost rate
overallocated indirect costs
direct material costs
11. Predicted economic results of the various possible combinations of actions and events in a decision model
outcomes
contribution margin
direct material costs
direct costs of a cost object
12. Inflows of assets (usually cash or accounts receivable) received for products or services provided to customers
revenues
cost
actual costing
underabsorbed indirect costs
13. Summary of alternative actions - events - outcomes - probabilities of events in a decision model
decision table
job-cost record
actual indirect-cost rate
product-sustaining costs
14. Gross margin divided by revenues
fixed cost
conversion costs
gross margin percentage
event
15. A variable - such as the level of activity or volume - that casually affects costs over a given time span
cost driver
underallocated indirect costs
direct material costs
work-in-process inventory
16. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
cost assignment
cost-allocation base
overallocated indirect costs
product-cost cross-subsidization
17. The possibility that an actual amount will deviate from an expected amount
uncertainty
normal costing
inventoriable costs
cost object
18. 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
budgeted indirect-cost rate
direct manufacturing labor costs
labor-time record
source document
19. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
direct costs of a cost object
overabsorbed indirect costs
operating leverage
facility-sustaining costs
20. 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
product costs
prime costs
refined costing system
manufacturing overhead allocated
21. Allocated amount of indirect costs in an accounting period is greater than the actual (incurred) amount in that period.
cost tracing
revenue driver
budgeted indirect-cost rate
overapplied indirect costs
22. Cost incurred (a historical or past cost) - as distinguished from a budgeted or forecaster cost
actual cost
cost of goods manufactured
cost pool
revenue driver
23. Cost-allocation base when the cost object is a job - product - or customer
outcomes
work-in-process inventory
cost-application base
conversion costs
24. Effects that fixed costs have on changes in operating income as changes occur in units sold and hence in contribution margin
average cost
operating leverage
facility-sustaining costs
cost-application base
25. Costs related to the particular cost object that can be traced to that object in an economicqally feasible (cost-effective) way
direct costs of a cost object
materials-requisition record
work-in-process inventory
overapplied indirect costs
26. Goods partially worked on but not yet completed
work-in-process inventory
variable cost
decision table
outcomes
27. Assignment of indirect costs to a particular cost object
product overcosting
variable cost
cost allocation
net income
28. Wages paid for unproductive time caused by lack of orders - machine breakdowns - material shortages - poor scheduling - and the like
unit cost
cost accumulation
direct materials inventory
idle time
29. All costs in the income statement other than cost of goods sold
process-costing system
period costs
underallocated indirect costs
relevant range
30. Contribution margin per unit divided by selling price
operating leverage
actual indirect-cost rate
expected value
contribution margin ratio
31. 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
unit cost
actual cost
revenues
inventoriable costs
32. Actual total indirect costs in a cost pool divided by the actual total quantity of the cost-allocation base for that cost pool
period costs
actual indirect-cost rate
expected monetary value
decision table
33. The costs of activities undertaken to support individual services
service-sustaining costs
fixed cost
outcomes
job
34. Cost of goods brought to completion - whether they were started before or during the current accounting period
cost of goods manufactured
cost object
finished goods inventory
revenue driver
35. 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.
work-in-process inventory
factory overhead costs
merchandising-sector companies
average cost
36. 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
direct costs of a cost object
actual costing
direct manufacturing labor costs
cost driver
37. A unit or multiple units of a distinct product or service
job
idle time
sales mix
revenues
38. 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
PV graph
activity
cost assignment
outcomes
39. A factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
contribution margin ratio
outcomes
cost-volume-profit (CVP) analysis
cost-allocation base
40. 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
cost hierarchy
job
cost-volume-profit (CVP) analysis
PV graph
41. Describes the likelihood (or the probability) that each of the mutually exclusive and collectively exhaustive set of events will occur
probability distribution
manufacturing-sector companies
budgeted cost
direct manufacturing labor costs
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
net income
fixed cost
facility-sustaining costs
activity-based costing (ABC)
43. Cost that changes in total in proportion to changes in the related level of total activity or volume
manufacturing-sector companies
facility-sustaining costs
variable cost
process-costing system
44. Contribution margin divided by operating income at any given level of sales
factory overhead costs
product costs
degree of operating leverage
direct manufacturing labor costs
45. 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
underallocated indirect costs
manufacturing overhead applied
cost-allocation base
actual cost
46. Companies that provide services or intangible products to their customers
service-sector companies
contribution margin percentage
process-costing system
expected value
47. All manufacturing costs other than direct material costs
conversion costs
actual costing
decision table
batch-level costs
48. Cost computed by dividing total cost by the number of units
average cost
cost-allocation base
manufacturing-sector companies
indirect manufacturing costs
49. Restates all overhead entries in the general ledger and subsidiary ledgers using actual cost rates rather than budgeted cost rates
adjusted allocation-rate approach
facility-sustaining costs
direct material costs
actual costing
50. The spreading of underallocated manufacturing overhead or overallocated manufacturing overhead amound ending work in process - finished goods - and cost of goods sold
activity-based costing (ABC)
materials-requisition record
proration
labor-time record