Test your basic knowledge |

Cost Accounting Equations And More

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. DL + DM






2. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)






3. A little fixed & a little variable






4. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv






5. Property tax - property insurance - and property rent






6. Selling and Administrative






7. Amount by which budgeted (actual) revenue exceeds the BE Revenue.






8. Beg Inv + Purchased DM - Cost of DM Available for use






9. Direct - Indirect - Mixed - Fixed - Variable - etc.






10. Costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM - DL)






11. BE Units x SP -or- FC / CM%






12. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)






13. FC / CM per unit






14. Y = FC + (VC Per Unit x Activity Measure or Unit)






15. Rev - COGS






16. Goods Available for Sale - End Finished Goods






17. DM - DL - FOH






18. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]






19. Op Income - Income Taxes






20. Product and Period Costs






21. The direct and variable costs that can be traced back to the cost object.






22. Quantities of various products (services) that constitute total unit sales of a company






23. Cost incurred






24. CM per unit / SP






25. Sales Revenue - BE Revenue






26. DL + FOH






27. Total Rev - Total VC






28. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.






29. Band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.






30. Can not be traced to the cost object in a cost-effective way (FO)






31. ∑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)






32. The direct and variable costs related to the labor that goes into production.






33. Predicted cost






34. Describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)






35. SP x Units Sold






36. Drives the cost of production. ex. labor hrs - materials - machine hours






37. Budgeted Sales(units) - BE Sales (units)






38. Advertising - Depreciation of Office Equipment - Shipping Costs






39. Indirect and fixed costs related to the factory used for production.






40. 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






41. When total revenue = total cost - Op Income = 0






42. DM - DL - FO






43. COGM + Beg Finished Goods






44. Pay for Print: $100 for first 500 copies - $0.06 for each copy over 500.






45. DL + FOH






46. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC






47. Follows GAAP rules - summarized information for external users.






48. Can be traced to the cost object in a cost-effective way (DM - DL)






49. Beg Inv of DM (Jan 1) + Purchases of DM - End Inv of DM (Dec 31)






50. The product being made