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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. Amount by which budgeted (actual) revenue exceeds the BE Revenue.
Variable Costs (VC)
CM % (ratio)
Indirect Cost
Margin of Safety
2. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv
Conversion Cost
CoGMnf
Classifications of Mfg Costs
Prime Cost
3. DL + FOH
Relevant Range
Variable Costs (VC)
Example of FO
Conversion Costs
4. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
MoS (in units)
Cost Object
Fixed Cost
Types of Inventorial Costs
5. Follows GAAP rules - summarized information for external users.
DM Used
Product Costs
Operating Leverage
Financial Accounting
6. Can be traced to the cost object in a cost-effective way (DM - DL)
Example of Mixed Cost
Conversion Cost
Direct Labor
Direct Cost
7. The product being made
Variable Costs (VC)
Conversion Cost
Cost Object
CM (per unit)
8. DM - DL - FOH
Product Costs
Direct Cost
Direct Materials
Classifications of Mfg Costs
9. Op Income - Income Taxes
Net Income
Sales Mix
COGS
MoS %
10. ∑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
BE Units
Goods Available for Sale
MoS (in units)
11. DL + FOH
Contribution Margin (CM)
Mixed Cost (Semi-Variable)
BE Revenue
Conversion Cost
12. Product and Period Costs
BE Revenue
High Low Method
Types of Inventorial Costs
DM Used
13. Beg Inv of DM (Jan 1) + Purchases of DM - End Inv of DM (Dec 31)
CM % (ratio)
Financial Accounting
Indirect Cost
DM Used
14. Budgeted Sales(units) - BE Sales (units)
Fixed Cost
MoS (in units)
Cost Volume Profit (CVP)
High Low Method
15. FC / CM per unit
BE Units
Total Mnf Costs Incurred
Prime Cost
Variable Cost
16. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC
Managerial Accounting
Cost Driver
Operating Income
Conversion Cost
17. DL + DM
Classifications of Mfg Costs
Relevant Range
Mixed Cost (Semi-Variable)
Prime Cost
18. Rev - COGS
Gross Profit
Cost of Making a Product
Cost Driver
Degree of Op Leverage
19. Selling and Administrative
BE Units
Period Costs
High Low Method
Classifications of Mfg Costs
20. Quantities of various products (services) that constitute total unit sales of a company
Example of FO
Indirect Cost
Total Mnf Costs Incurred
Sales Mix
21. Product Cost / Units Produced
Indirect Cost
Product Cost (per unit)
Variable Cost
Budgeted Cost
22. Pay for Print: $100 for first 500 copies - $0.06 for each copy over 500.
Product Cost (per unit)
Sales Mix
Example of Mixed Cost
Cost Object
23. Goods Available for Sale - End Finished Goods
Gross Profit
COGS
Managerial Accounting
Degree of Op Leverage
24. Advertising - Depreciation of Office Equipment - Shipping Costs
CM % (ratio)
Cost Driver
Net Income
Example of Period Costs
25. Indirect and fixed costs related to the factory used for production.
Relevant Range
Break Even Point
Total Mnf Costs Incurred
Factory Overhead
26. Direct - Indirect - Mixed - Fixed - Variable - etc.
BE Units
Classifications of Mfg Costs
Types of Inventorial Costs
Sales Mix
27. SP-VC (per unit)
Net Income
CM (per unit)
MoS %
Product Costs
28. VC per unit x Units Sold
Variable Costs (VC)
Indirect Cost
Product Cost (per unit)
High Low Method
29. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.
Example of FO
DM Used
Period Costs
Managerial Accounting
30. Y = FC + (VC Per Unit x Activity Measure or Unit)
Write the Equation (slope)
Managerial Accounting
Classifications of Mfg Costs
Variable Costs (VC)
31. Can not be traced to the cost object in a cost-effective way (FO)
Indirect Cost
Cost Driver
High Low Method
MoS (in units)
32. CM per unit / SP
Operating Income
Example of FO
CM % (ratio)
Cost Volume Profit (CVP)
33. DM - DL - FO
High Low Method
Operating Leverage
Actual Cost
Cost of Making a Product
34. 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
BE Units
Sales Mix
High Low Method
Cost Volume Profit (CVP)
35. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
DM Used
Degree of Op Leverage
Cost Driver
Conversion Cost
36. A little fixed & a little variable
DM Used
Mixed Cost (Semi-Variable)
Example of FO
Net Income
37. SP x Units Sold
Degree of Op Leverage
Variable Cost
Revenue
Prime Cost
38. Beg Inv + Purchased DM - Cost of DM Available for use
Ending Inventory
Budgeted Cost
Degree of Op Leverage
Operating Leverage
39. When total revenue = total cost - Op Income = 0
Budgeted Cost
COGS
Variable Costs (VC)
Break Even Point
40. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
Cost Driver
Net Income
MoS %
BE Revenue
41. Costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM - DL)
Relevant Range
Period Costs
Variable Cost
Direct Labor
42. BE Units x SP -or- FC / CM%
BE Revenue
Classifications of Mfg Costs
Budgeted Cost
MoS %
43. Total Rev - Total VC
Margin of Safety
Sales Mix
Contribution Margin (CM)
Cost of Making a Product
44. Sales Revenue - BE Revenue
MoS (formula)
Example of Mixed Cost
Product Cost (per unit)
Factory Overhead
45. Drives the cost of production. ex. labor hrs - materials - machine hours
Budgeted Cost
Cost Driver
BE Units
Example of Period Costs
46. The direct and variable costs related to the labor that goes into production.
Gross Profit
COGS
Direct Labor
Fixed Cost
47. Property tax - property insurance - and property rent
Example of FO
Mixed Cost (Semi-Variable)
Cost Driver
Cost Object
48. COGM + Beg Finished Goods
Goods Available for Sale
Cost Object
Direct Materials
Operating Leverage
49. Cost incurred
Indirect Cost
Prime Cost
Actual Cost
Goods Available for Sale
50. # 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
High Low Method
Example of Mixed Cost
Margin of Safety
Degree of Op Leverage