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. CM per unit / SP






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






3. Product and Period Costs






4. SP x Units Sold






5. DL + FOH






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






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






8. Op Income - Income Taxes






9. Selling and Administrative






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






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






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






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






14. FC / CM per unit






15. VC per unit x Units Sold






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






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






18. Total Rev - Total VC






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






20. Advertising - Depreciation of Office Equipment - Shipping Costs






21. DM - DL - FO






22. Cost incurred






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






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






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






26. The product being made






27. DL + DM






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






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






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






32. Sales Revenue - BE Revenue






33. DL + FOH






34. A little fixed & a little variable






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






36. Property tax - property insurance - and property rent






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






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






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






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






41. Predicted cost






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






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






44. DM + DL + FOH






45. Product Cost / Units Produced






46. Goods Available for Sale - End Finished Goods






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






48. 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






49. DM - DL - FOH






50. SP-VC (per unit)