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