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






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






3. VC per unit x Units Sold






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






5. Sales Revenue - BE Revenue






6. FC / CM per unit






7. Cost incurred






8. Selling and Administrative






9. COGM + Beg Finished Goods






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






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






12. Product and Period Costs






13. DL + FOH






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






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






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






17. A little fixed & a little variable






18. DM - DL - FOH






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






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






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






22. SP-VC (per unit)






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






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






25. Op Income - Income Taxes






26. DL + DM






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






28. 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






29. CM per unit / SP






30. DM + DL + FOH






31. Total Rev - Total VC






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






33. Predicted cost






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






35. Property tax - property insurance - and property rent






36. SP x Units Sold






37. ∑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)






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






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






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






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






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






43. The product being made






44. # 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






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






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. DM - DL - FO






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






49. Goods Available for Sale - End Finished Goods






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