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






2. Advertising - Depreciation of Office Equipment - Shipping Costs






3. FC / CM per unit






4. Predicted cost






5. The product being made






6. Product and Period Costs






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






8. Rev - COGS






9. Property tax - property insurance - and property rent






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






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






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






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






14. Goods Available for Sale - End Finished Goods






15. VC per unit x Units Sold






16. DL + DM






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






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






19. Product Cost / Units Produced






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






21. DM - DL - FOH






22. DL + FOH






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






24. Selling and Administrative






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






26. 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






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






28. CM per unit / SP






29. # 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






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






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






32. COGM + Beg Finished Goods






33. ∑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)






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






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






36. DM + DL + FOH






37. Op Income - Income Taxes






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






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






40. SP x Units Sold






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






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






43. DM - DL - FO






44. A little fixed & a little variable






45. Sales Revenue - BE Revenue






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






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






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






50. DL + FOH