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Test your basic knowledge |
Managerial Accounting And Cost Concepts
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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
.
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 cost that cannot be easily and conveniently traced to a specified cost object.
Selling Costs
Indirect Cost
Opportunity Cost
Committed Fixed Costs
2. The degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance or degrade its performance.
Independent Variable
Quality Circles
Product Costs
Quality of Conformance
3. Method based on the rise-over-run formula for the slope of a straight line.
Contribution Approach
Product Costs
Cost Structure
High-Low Method
4. Represent organizational investments with a multiyear planning horizon that can't be significantly reduced even for short period of time without making fundamental changes.
Discretionary Fixed Costs
Cost behavior is considered linear when...
Committed Fixed Costs
Variable Cost
5. (1.)Selling costs (2.)Administrative costs
2 Categories of Non-manufacturing Costs
Mixed Cost
Sunk Cost
Incremental Cost
6. A method that uses all of the date to separate a mixed cost into its fixed and variable cost components.
Mixed Cost
Least-Squares Regression Method
Contribution Approach
Product Costs
7. A cost that can be easily and conveniently traced to a specified cost object.
Direct Cost
High-Low Method Formula
Selling Costs
Relevant Range
8. Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product.
Prime Cost
Incremental Cost
Direct Materials
Variable Cost
9. Product costs that were initially assigned to inventories.
Conversion Cost
Prevention Costs
Inventoriable Costs
Dependent Variable
10. Provides managers with an income statement that clearly distinguishes between fixed and variable costs and therefore aids in planning - controlling - and decision making.
Quality of Conformance
Activity Base
Contribution Approach
Differential Revenue
11. Cost that are incurred when a product or service that is defective is delivered to a customer.
External Failure Costs
Discretionary Fixed Costs
Appraisal Costs
Mixed Cost
12. Cost that are incurred to keep defects from occurring.
Prime Cost
Mixed Cost
Prevention Costs
Fixed Cost
13. A cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Period Costs
Opportunity Cost
2 Categories of Non-manufacturing Costs
Sunk Cost
14. A difference in costs between any two alternatives.
Conversion Cost
Statistical Process Control
Fixed Cost
Differential Cost
15. Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Opportunity Cost
Indirect Labor
Quality Circles
External Failure Costs
16. Anything for which cost data are desired-including products - customers - jobs - and organizational sub-units.
Cost Object
Least-Squares Regression Method
Sunk Cost
Indirect Materials
17. Consists of labor costs that can be easily (i.e. physically and conveniently) traced to individual units of product.
Quality of Conformance
Direct Labor
Manufacturing Overhead
2 Categories of Non-manufacturing Costs
18. (Also known as the 'Y' variable); The amount of cost incurred during a period depends on the level of activity for the period.
External Failure Costs
Variable Cost =
Dependent Variable
Engineering Approach
19. A cost that remains constant - in total - regardless of changes in the level of activity.
Fixed Cost
Cost Behavior
Account Analysis
High-Low Method
20. (Y2-Y1)/(X2-X1)
High-Low Method Formula
Direct Labor
Fixed Cost
High-Low Method
21. The materials that go into the final product.
Raw Materials
Inventoriable Costs
Selling Costs
Prevention Costs
22. Costs that are incurred to identify defective products before the products are shipped to customers.
Direct Cost
Cost Object
Common Cost
Appraisal Costs
23. Refers to an increase in cost from one alternative to another.
Conversion Cost
Appraisal Costs
Differential Cost
Incremental Cost
24. Costs that usually arise from annual decisions by management to spend on certain fixed cost items. (Also known as 'managed fixed costs').
Discretionary Fixed Costs
Indirect Cost
Prime Cost
Quality of Conformance
25. Change in cost/ change in activity.
Prevention Costs
Opportunity Cost
Variable Cost =
Cost of Goods Sold Equation
26. Materials that are included as part of manufacturing overhead.
Indirect Materials
Internal Failure Costs
Incremental Cost
Contribution Approach
27. Quality control requirements issued by the International Organization for Standardization that relate to products sold in European Countries.
Sunk Cost
ISO 9000 Standards
Direct Labor
Prime Cost
28. A report that details prevention costs - appraisal costs - and the costs of internal and external failures.
Quality Cost Report
Inventoriable Costs
Mixed Cost
Independent Variable
29. The sum of direct labor cost and manufacturing overhead cost. (Refers to converting the materials into the finished product.)
Conversion Cost
2 Categories of Non-manufacturing Costs
Sunk Cost
Quality Cost Report
30. The amount remaining from sales revenues after variable expenses have been deducted. (This amount contributes toward covering fixed expenses and then towards profits for the period.)
Cost Structure
2 Categories of Non-manufacturing Costs
Contribution Margin
High-Low Method
31. An approach to cost analysis that involves a detailed analysis of what cost behavior should be - based on an industrial engineer's evaluation of the production methods to be used - the materials specifications - labor requirements - equipment usage -
Engineering Approach
Manufacturing Overhead
Activity Base
Cost Behavior
32. A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems.
Statistical Process Control
Variable Cost =
Period Costs
Cost Object
33. A cost which varies - in total - in direct proportion to changes in level of activity.
Differential Cost
Contribution Margin
Engineering Approach
Variable Cost
34. The range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.
Relevant Range
Sunk Cost
Product Costs
Mixed Cost
35. All the costs that are not product costs.
Period Costs
Differential Cost
Manufacturing Overhead
Statistical Process Control
36. A difference in revenues between any two alternatives.
Differential Revenue
Direct Materials
Direct Cost
Indirect Materials
37. Whenever a straight line is a reasonable approximation for the relation between cost and activity.
Cost behavior is considered linear when...
Statistical Process Control
Discretionary Fixed Costs
Direct Materials
38. All costs involved in acquiring or making a product.
2 Categories of Non-manufacturing Costs
Cost Object
Quality Cost Report
Product Costs
39. Refers to how a cost reacts to changes in the level of activity.
Cost Behavior
Fixed Cost
Cost Structure
External Failure Costs
40. The sum of direct materials cost and direct labor cost -
Prime Cost
Cost behavior is considered linear when...
Variable Cost
Cost Object
41. (Also known as the 'X' variable); Refers to activity because it causes variations in the cost.
Period Costs
Prevention Costs
Statistical Process Control
Independent Variable
42. The relative proportion of each type of cost in an organization.
Activity Base
Cost Structure
Differential Revenue
External Failure Costs
43. Include all costs associated with the general management of an organization rather than with manufacturing or selling.
Contribution Approach
Administrative Costs
Internal Failure Costs
Selling Costs
44. The third element of manufacturing cost - includes all manufacturing costs except direct materials and direct labor.
Manufacturing Overhead
Differential Revenue
Differential Cost
Indirect Materials
45. Beginning merchandise inventory + Purchase - Ending merchandise inventory
Cost of Goods Sold Equation
Contribution Margin
Direct Labor
Quality Cost
46. Costs that are incurred as a result of identifying defective products before they are shipped to the customers.
Fixed Cost
Cost Behavior
Internal Failure Costs
Cost behavior is considered linear when...
47. A measure of whatever causes the incurrence of a variable cost.
Appraisal Costs
Prevention Costs
Variable Cost =
Activity Base
48. The potential benefit that is given up when one alternative is selected over another.
Opportunity Cost
Contribution Margin
Product Costs
Period Costs
49. A cost that is incurred to support a number of cost objects - but cannot be traced to them individually.
Inventoriable Costs
Common Cost
Dependent Variable
Quality Circles
50. Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units.
Relevant Range
Common Cost
Quality Cost
Incremental Cost