Cost Accounting Terms

Matching exercise

Match the items on the right to the items on the left.
An area of accounting that involves measuring, recording, and reporting service or product costs
The study of how specific costs respond to changes in the level of business activity.
The sum of labor costs and overhead costs.
Any segment or element for which cost information is desired. A product, service, project, activity, department, division, or customer, etc.
The cost of products or services sold.
A measure of the work done during the period, expressed in fully completed units.
The inventory of fully completed goods or services.
Costs that remain the same in total regardless of changes in the activity level.
These can’t be directly traced to the product; instead, these costs are allocated, based on some level of activity. For example, overhead costs are considered indirect costs.
A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
A cost accounting system in which costs are assigned to each job or batch.
All costs related to the production of goods.
Costs that contain both a variable and a fixed cost element and change in total but not proportionately with changes in the activity level.
The ongoing expenses of operating a business. They are all costs on the income statement except for direct labor, direct materials, and direct expenses.
Cost that are expensed in the period in which incurred.
Actual units to be accounted for during a period, irrespective of any work performed.
A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.
The sum of direct labor costs and direct material costs.
A system of accounting used when a large quantity of similar products are manufactured.
Costs associated with producing a product that are capitalized in the inventory, i.e., become assets until the products are sold.
Materials or substances used in the production of goods or services.
The range of the activity index over which the company expects to operate during the year.
Costs that are irrevocable, or unavoidable and therefore not relevant.
Costs expressed in terms of equivalent units of production.
The inventory of partially completed goods or services.
Costs that vary in total directly and proportionately with changes in the activity level.
Cost accounting
Cost behavior analysis
Conversion costs
Cost object
Cost Of Goods Sold
Equivalent units of production
Finished Goods
Fixed costs
Indirect costs
Job cost sheet
Job order cost system
Manufacturing costs
Mixed costs
Overhead costs
Period costs
Physical units
Predetermined overhead rate
Prime costs
Process cost system
Product costs
Raw materials
Relevant range
Sunk costs
Unit production costs
Variable costs