Matching Quiz

Match the terms listed below, with the appropriate desciption from the list on the right.


1				Control


2				Controllable or not controllable costs


3				Conversion costs


4				Cost object


5				Direct cost


6				Direct labour


7				Direct labour costs


8				Direct materials


9				Direct material costs


10				Factory overhead


11				Factory overhead costs


12				Finished goods inventory


13				Fixed cost


14				Goods in process inventory


15				Implementation


16				Indirect cost


17				Indirect labour


18				Indirect materials


19				Just-in-time (JIT)


20				Lean business practices


21				Managerial accounting


22				Manufacturing cost


23				Manufacturing statement


24				Non-manufacturing cost


25				Opportunity costs


26				Out-of-pocket cost


27				Period costs


28				Planning


29				Prime costs


30				Product costs


31				Raw materials


32				Raw materials inventory


33				Relevant Cost


34				Sunk cost


35				Theory of constraints (TOC)


36				Throughput


37				Total Quality Management (TQM)


38				Unit contribution margin


39				Variable cost

Answer choices for questions 1 through 39

A)	Products that are in the process of being manufactured but that are not yet complete (also called work in process inventory).
B)	Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product.
C)	The potential benefit lost by taking a specific action out of two or more alternative choices.
D)	Factory activities supporting the manufacturing process that are not direct materials or direct labour.
E)	The collecting, managing, and processing of financial and nonfinancial information for use by managers and other internal decision makers of an organization.
F)	Costs that are capitalized as inventory because they produce benefits that are expected to have value in the future. They include direct materials, direct labour, and factory overhead costs.
G)	The cost does not change with changes in the volume of an activity.
H)	The process of monitoring planning decisions and evaluating the organization’s activities and employees.
I)	Expenditures incurred in the process of converting raw materials to finished goods. They include direct labour costs and factory overhead costs.
J)	Products that have completed the manufacturing process and are ready to be sold by the manufacturer.
K)	A cost that is necessary and integral towards the production of finished goods.
L)	A statement that summarizes the types and amounts of costs incurred by a company during a given period for its manufacturing process; also called the schedule of manufacturing activities or the schedule of goods manufactured.
M)	A cost that is not integral to the production of finished goods.
N)	Expenditures for direct materials that are separately and readily traced through the manufacturing process to finished goods.
O)	The process of ensuring that the plans are carried out; involves developing actions, and directing and motivating employees.
P)	A cost requiring a future outlay of cash.
Q)	A cost is controllable or not depending on a manager’s responsibilities and whether or not they are in a position to make decisions on expenditures.
R)	Costs that are incurred for the benefit of one specific cost object.
S)	Raw materials that physically become part of the product and therefore are clearly identified with specific units or batches of product.
T)	Includes practices such as just-in-time, total quality management, and theory of constraints which are designed to reduce waste in an organization.
U)	The added value (selling price minus direct material costs) of finished products processed through the system.
V)	The goods a company acquires to use in making products.
W)	The process of setting goals and making plans to achieve them.
X)	Expenditures identified more with a time period than with finished products costs. Includes selling and general administration expenses.
Y)	A cost already incurred and that cannot be avoided or changed.
Z)	Efforts of employees who physically convert materials to finished product.
AA)	A system whereby a company acquires or produces inventory only when needed.
AB)	Wages and salaries for direct labour that are separately and readily traced through the manufacturing process to finished goods.
AC)	Materials that are purchased for use in manufacturing a product; those that become an integral part of the finished product are called direct materials, and the others are called indirect materials.
AD)	A cost that influences or has a bearing on a certain decision.
AE)	The process of identifying factors that constrain or limit a company’s operations.
AF)	A product’s sale price less its total variable costs per unit.
AG)	A product, process, department, or customer to which costs are assigned.
AH)	Costs that are incurred for the benefit of more than one cost object.
AI)	Efforts of manufacturing employees who do not work specifically on converting direct materials into finished products and that are not clearly associated with specific units or batches of product.
AJ)	Expenditures directly associated with the manufacturing of finished goods. They include direct material costs and direct labour costs.
AK)	The cost changes in proportion to changes in the volume of an activity.
AL)	A management process that achieves continuous improvement by relentlessly focusing on improving quality everywhere in the organization.
AM)	Expenditures for factory overhead that cannot be separately or readily traced to finished goods.

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