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Test your basic knowledge |
Cost Accounting Equations And More
Start Test
Study First
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. SP-VC (per unit)
Product Cost (per unit)
DM Used
Sales Mix
CM (per unit)
2. Advertising - Depreciation of Office Equipment - Shipping Costs
Variable Cost
Classifications of Mfg Costs
Total Mnf Costs Incurred
Example of Period Costs
3. Drives the cost of production. ex. labor hrs - materials - machine hours
Budgeted Cost
Prime Cost
Cost Driver
CM (per unit)
4. Budgeted Sales(units) - BE Sales (units)
Ending Inventory
MoS (in units)
Product Costs
DM Used
5. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC
Cost Driver
Classifications of Mfg Costs
MoS %
Operating Income
6. The direct and variable costs that can be traced back to the cost object.
Direct Materials
Example of FO
Cost Driver
High Low Method
7. DM - DL - FO
Sales Mix
Operating Leverage
Product Cost (per unit)
Cost of Making a Product
8. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
Types of Inventorial Costs
Fixed Cost
MoS %
CM % (ratio)
9. Selling and Administrative
Conversion Costs
DM Used
Period Costs
Revenue
10. Follows GAAP rules - summarized information for external users.
Actual Cost
Net Income
MoS (formula)
Financial Accounting
11. Can not be traced to the cost object in a cost-effective way (FO)
Financial Accounting
Indirect Cost
MoS (formula)
Net Income
12. BE Units x SP -or- FC / CM%
MoS (formula)
BE Revenue
Gross Profit
Direct Cost
13. The direct and variable costs related to the labor that goes into production.
MoS (formula)
Direct Labor
Mixed Cost (Semi-Variable)
Degree of Op Leverage
14. When total revenue = total cost - Op Income = 0
Cost Driver
Break Even Point
Product Costs
Indirect Cost
15. Beg Inv of DM (Jan 1) + Purchases of DM - End Inv of DM (Dec 31)
Prime Cost
BE Units
DM Used
Total Mnf Costs Incurred
16. # of Units: H1 and L1 - Cost: H2 and L2 - VC per Unit: (H2 - L2 / (H1-L1) - FC: L2 - VCL -or- H2 - VCH - VCH: H1 x VC per Unit VCL: L1 x VC per Unit
Gross Profit
Direct Cost
Types of Inventorial Costs
High Low Method
17. CM per unit / SP
Goods Available for Sale
Prime Cost
CoGMnf
CM % (ratio)
18. Goods Available for Sale - End Finished Goods
Gross Profit
Conversion Cost
Cost of Making a Product
COGS
19. Product Cost / Units Produced
Actual Cost
BE Units
Fixed Cost
Product Cost (per unit)
20. Costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM - DL)
Managerial Accounting
Product Cost (per unit)
MoS (formula)
Variable Cost
21. DL + DM
High Low Method
Prime Cost
Relevant Range
Gross Profit
22. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
BE Units
Degree of Op Leverage
Product Cost (per unit)
Sales Mix
23. Examines the behavior of total rev - total costs - Op Inc as changes occur in the output level - selling price - variable cost per unit - or the fixed costs of a product
Goods Available for Sale
Cost Volume Profit (CVP)
MoS %
Financial Accounting
24. Total Rev - Total VC
Direct Materials
Fixed Cost
MoS (in units)
Contribution Margin (CM)
25. Rev - COGS
Gross Profit
Variable Costs (VC)
Ending Inventory
DM Used
26. FC / CM per unit
Conversion Cost
BE Units
Mixed Cost (Semi-Variable)
Operating Income
27. Op Income - Income Taxes
Net Income
Indirect Cost
Conversion Costs
Sales Mix
28. DM + DL + FOH
Cost Volume Profit (CVP)
Total Mnf Costs Incurred
Example of FO
Mixed Cost (Semi-Variable)
29. Cost incurred
Indirect Cost
Actual Cost
Variable Costs (VC)
Total Mnf Costs Incurred
30. SP x Units Sold
Operating Leverage
Prime Cost
Ending Inventory
Revenue
31. Amount by which budgeted (actual) revenue exceeds the BE Revenue.
Cost Object
Margin of Safety
Cost Driver
Managerial Accounting
32. DM - DL - FOH
Ending Inventory
Budgeted Cost
Product Costs
Least Squares Regression Method
33. VC per unit x Units Sold
Least Squares Regression Method
Ending Inventory
Operating Leverage
Variable Costs (VC)
34. The product being made
Mixed Cost (Semi-Variable)
Cost Object
Cost Volume Profit (CVP)
Operating Leverage
35. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
Direct Materials
MoS %
Cost of Making a Product
Financial Accounting
36. Describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)
CM (per unit)
Example of Period Costs
Operating Leverage
Conversion Cost
37. Band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.
Operating Leverage
Margin of Safety
Types of Inventorial Costs
Relevant Range
38. Predicted cost
Budgeted Cost
Direct Materials
Operating Leverage
MoS (formula)
39. DL + FOH
Mixed Cost (Semi-Variable)
Cost Driver
Direct Cost
Conversion Cost
40. Y = FC + (VC Per Unit x Activity Measure or Unit)
Break Even Point
Managerial Accounting
Goods Available for Sale
Write the Equation (slope)
41. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv
Cost Driver
Conversion Cost
CoGMnf
Total Mnf Costs Incurred
42. Indirect and fixed costs related to the factory used for production.
Budgeted Cost
Cost of Making a Product
Factory Overhead
Goods Available for Sale
43. DL + FOH
Period Costs
Conversion Costs
Goods Available for Sale
High Low Method
44. A little fixed & a little variable
Gross Profit
Period Costs
Factory Overhead
Mixed Cost (Semi-Variable)
45. ∑xy = (FC)(∑x) + (VC)(∑x^2) - ∑y = (n)(FC) + (VC)(∑x) - solve for a & b - then write the formula/equation: y = FC + (VC x Units)
Least Squares Regression Method
COGS
High Low Method
BE Units
46. Direct - Indirect - Mixed - Fixed - Variable - etc.
BE Units
Direct Materials
Classifications of Mfg Costs
Period Costs
47. Can be traced to the cost object in a cost-effective way (DM - DL)
Factory Overhead
Direct Cost
Budgeted Cost
Prime Cost
48. Product and Period Costs
Revenue
Types of Inventorial Costs
CM % (ratio)
Degree of Op Leverage
49. Quantities of various products (services) that constitute total unit sales of a company
Period Costs
MoS (in units)
Financial Accounting
Sales Mix
50. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.
Product Costs
Cost of Making a Product
MoS (formula)
Managerial Accounting