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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 charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems.
Inventoriable Costs
Raw Materials
Statistical Process Control
Differential Cost
2. 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
Prevention Costs
Direct Materials
3. The sum of direct materials cost and direct labor cost -
Quality Circles
Prime Cost
Manufacturing Overhead
Direct Cost
4. Refers to an increase in cost from one alternative to another.
2 Categories of Non-manufacturing Costs
Incremental Cost
Cost behavior is considered linear when...
Variable Cost =
5. A difference in costs between any two alternatives.
Committed Fixed Costs
Common Cost
Differential Cost
Administrative Costs
6. Whenever a straight line is a reasonable approximation for the relation between cost and activity.
Statistical Process Control
Contribution Approach
Cost behavior is considered linear when...
Direct Cost
7. A cost that can be easily and conveniently traced to a specified cost object.
Direct Cost
Prime Cost
Indirect Labor
Raw Materials
8. (Also known as the 'X' variable); Refers to activity because it causes variations in the cost.
Period Costs
ISO 9000 Standards
Differential Revenue
Independent Variable
9. An account is classified as either variable of fixed based on the analyst's prior knowledge of how the cost in the account behaves.
Account Analysis
ISO 9000 Standards
Quality of Conformance
Contribution Approach
10. 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.)
Quality Cost
Direct Materials
Contribution Margin
Differential Revenue
11. A cost which varies - in total - in direct proportion to changes in level of activity.
Variable Cost
Statistical Process Control
Quality of Conformance
Indirect Materials
12. 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 -
ISO 9000 Standards
Engineering Approach
Opportunity Cost
Inventoriable Costs
13. Method based on the rise-over-run formula for the slope of a straight line.
Cost Structure
Cost Behavior
High-Low Method
Cost behavior is considered linear when...
14. A report that details prevention costs - appraisal costs - and the costs of internal and external failures.
Cost Structure
Direct Cost
Differential Revenue
Quality Cost Report
15. Anything for which cost data are desired-including products - customers - jobs - and organizational sub-units.
Cost Object
Period Costs
Relevant Range
Engineering Approach
16. Small groups of employees that meet on a regular basis to discuss ways of improving quality.
2 Categories of Non-manufacturing Costs
Independent Variable
Period Costs
Quality Circles
17. A difference in revenues between any two alternatives.
Differential Revenue
Common Cost
Engineering Approach
Discretionary Fixed Costs
18. Consists of labor costs that can be easily (i.e. physically and conveniently) traced to individual units of product.
Cost Object
Differential Revenue
External Failure Costs
Direct Labor
19. A cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Quality Cost Report
Cost behavior is considered linear when...
Sunk Cost
Activity Base
20. Quality control requirements issued by the International Organization for Standardization that relate to products sold in European Countries.
ISO 9000 Standards
2 Categories of Non-manufacturing Costs
Variable Cost
Cost of Goods Sold Equation
21. Materials that are included as part of manufacturing overhead.
Activity Base
Indirect Materials
Independent Variable
Period Costs
22. Include all costs that are incurred to secure customer orders and get the finished product to the customer.
Prime Cost
Least-Squares Regression Method
Selling Costs
Common Cost
23. The third element of manufacturing cost - includes all manufacturing costs except direct materials and direct labor.
Quality of Conformance
Manufacturing Overhead
Relevant Range
Internal Failure Costs
24. A cost that cannot be easily and conveniently traced to a specified cost object.
External Failure Costs
Indirect Cost
Direct Cost
Cost Object
25. Include all costs associated with the general management of an organization rather than with manufacturing or selling.
Indirect Labor
External Failure Costs
Variable Cost
Administrative Costs
26. The sum of direct labor cost and manufacturing overhead cost. (Refers to converting the materials into the finished product.)
Variable Cost
Conversion Cost
Indirect Cost
Internal Failure Costs
27. Costs that usually arise from annual decisions by management to spend on certain fixed cost items. (Also known as 'managed fixed costs').
Prime Cost
Contribution Approach
Discretionary Fixed Costs
Least-Squares Regression Method
28. The range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.
Raw Materials
Discretionary Fixed Costs
Fixed Cost
Relevant Range
29. A cost that is incurred to support a number of cost objects - but cannot be traced to them individually.
Appraisal Costs
External Failure Costs
Common Cost
Manufacturing Overhead
30. Labor costs that cannot be physically traced to particular products or that can be traced only at great cost and inconvenience.
Discretionary Fixed Costs
Indirect Materials
Indirect Labor
Cost Object
31. Cost that are incurred when a product or service that is defective is delivered to a customer.
Direct Labor
External Failure Costs
Administrative Costs
Indirect Labor
32. (1.)Selling costs (2.)Administrative costs
2 Categories of Non-manufacturing Costs
Period Costs
External Failure Costs
Conversion Cost
33. Costs that are incurred to identify defective products before the products are shipped to customers.
Quality Cost Report
Conversion Cost
Appraisal Costs
Direct Materials
34. Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product.
Direct Materials
Differential Cost
Quality Circles
Variable Cost =
35. (Also known as the 'Y' variable); The amount of cost incurred during a period depends on the level of activity for the period.
Cost Structure
Internal Failure Costs
Dependent Variable
Least-Squares Regression Method
36. A cost that remains constant - in total - regardless of changes in the level of activity.
Independent Variable
Statistical Process Control
Fixed Cost
Cost of Goods Sold Equation
37. (Y2-Y1)/(X2-X1)
High-Low Method Formula
Direct Materials
Raw Materials
Direct Cost
38. All the costs that are not product costs.
Engineering Approach
Period Costs
Indirect Cost
Differential Revenue
39. The relative proportion of each type of cost in an organization.
Variable Cost =
Common Cost
ISO 9000 Standards
Cost Structure
40. The materials that go into the final product.
Sunk Cost
Quality Circles
Relevant Range
Raw Materials
41. The potential benefit that is given up when one alternative is selected over another.
Opportunity Cost
Period Costs
Administrative Costs
Statistical Process Control
42. 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.
Direct Labor
Common Cost
Dependent Variable
Quality of Conformance
43. Beginning merchandise inventory + Purchase - Ending merchandise inventory
Cost behavior is considered linear when...
Cost of Goods Sold Equation
Quality Cost
Sunk Cost
44. All costs involved in acquiring or making a product.
Account Analysis
Product Costs
Mixed Cost
Cost Behavior
45. Refers to how a cost reacts to changes in the level of activity.
Cost of Goods Sold Equation
Quality Circles
Statistical Process Control
Cost Behavior
46. Product costs that were initially assigned to inventories.
Cost Behavior
High-Low Method
Least-Squares Regression Method
Inventoriable Costs
47. 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.
Quality Cost
Period Costs
Dependent Variable
Cost Behavior
48. Change in cost/ change in activity.
Prime Cost
ISO 9000 Standards
Variable Cost =
Opportunity Cost
49. A measure of whatever causes the incurrence of a variable cost.
ISO 9000 Standards
Direct Labor
Independent Variable
Activity Base
50. Cost that are incurred to keep defects from occurring.
Relevant Range
Prime Cost
Prevention Costs
Direct Labor