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. 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






2. # 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






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






4. CM per unit / SP






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






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






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






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






9. Cost incurred






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






11. DM - DL - FO






12. ∑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)






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






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






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






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






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






18. A little fixed & a little variable






19. DL + FOH






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






21. Sales Revenue - BE Revenue






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






23. Product Cost / Units Produced






24. COGM + Beg Finished Goods






25. VC per unit x Units Sold






26. FC / CM per unit






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






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






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






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






31. DM + DL + FOH






32. Predicted cost






33. The product being made






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






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






36. Goods Available for Sale - End Finished Goods






37. DM - DL - FOH






38. DL + FOH






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






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






41. Property tax - property insurance - and property rent






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






43. SP x Units Sold






44. Selling and Administrative






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






46. Op Income - Income Taxes






47. DL + DM






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






49. Advertising - Depreciation of Office Equipment - Shipping Costs






50. SP-VC (per unit)