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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. DM - DL - FO






2. ∑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)






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






4. SP-VC (per unit)






5. CM per unit / SP






6. 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






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






8. Property tax - property insurance - and property rent






9. SP x Units Sold






10. Product Cost / Units Produced






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






12. Cost incurred






13. Product and Period Costs






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






15. Op Income - Income Taxes






16. FC / CM per unit






17. # 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






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






19. Total Rev - Total VC






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






21. DM - DL - FOH






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






23. Goods Available for Sale - End Finished Goods






24. Rev - COGS






25. VC per unit x Units Sold






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






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






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






29. Advertising - Depreciation of Office Equipment - Shipping Costs






30. DM + DL + FOH






31. Sales Revenue - BE Revenue






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






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






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






35. The product being made






36. DL + FOH






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






38. A little fixed & a little variable






39. Selling and Administrative






40. DL + FOH






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






42. DL + DM






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






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






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






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






47. Predicted cost






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






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






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