Test 1 Chap 1-3

Question 1

Actual Cost

Answer 1

Incurred

Question 2

Budgeted Cost

Answer 2

Predicted

Question 3

Average Cost/ Unit cost

Answer 3

Cost incurred divided by units produced

Question 4

Conversion Costs

Answer 4

All manufacturing costs other than direct material costs

Question 5

Cost accumulation

Answer 5

the collection of cost data in an organized way by using an accounting system

Question 6

Cost allocation

Answer 6

the assignment of indirect costs to a particular cost object

Question 7

Cost assignment

Answer 7

combines tracing direct costs and allocating indirect costs

Question 8

Cost Driver

Answer 8

A variable that casually affects costs over a given time span

Question 9

Cost object

Answer 9

Anything for which a cost measurement is desired

Question 10

Manufacturing overhead costs

Answer 10

Indirect manufacturing costs/ Factory overhead

Question 11

Inventoriable costs

Answer 11

All the costs of a product that are considered assets on a balance sheet and that are expensed through COGS

Question 12

Direct materials inventory

Answer 12

Direct materials in stock that will be used in manufacturing

Question 13

Operating income

Answer 13

Revenues - COGS and operating costs

Question 14

Period costs

Answer 14

All costs other than COGS

Question 15

Prime costs

Answer 15

All direct manufacturing costs

Question 16

Product costs

Answer 16

the sum of all costs assigned to a product for a particular purpose

Question 17

Financial Accounting

Answer 17

accounting that focuses on financial reporting

Question 18

Management Accounting

Answer 18

focuses on providing information managers use to make decisions

Question 19

What is the 5 step decision making process

Answer 19

Identify 
Obtain info 
Predict
Choose 
Implement and evaluate

Question 20

What are the 6 steps of value chain analysis?

Answer 20

R&D, Design, Production, Marketing, Distribution, Customer service

Question 21

What are 5 key success factors?

Answer 21

Cost & Efficiency, Quality, Time, Innovation, Sustainability