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






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






3. Product and Period Costs






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






5. Op Income - Income Taxes






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






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






8. # 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






9. DM + DL + FOH






10. DM - DL - FOH






11. Predicted cost






12. COGM + Beg Finished Goods






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






14. Selling and Administrative






15. FC / CM per unit






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






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






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






19. Product Cost / Units Produced






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






21. Property tax - property insurance - and property rent






22. SP x Units Sold






23. Cost incurred






24. The product being made






25. 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






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






27. DL + DM






28. DM - DL - FO






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






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






31. ∑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)






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






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






34. VC per unit x Units Sold






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






36. CM per unit / SP






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






38. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






41. Rev - COGS






42. Total Rev - Total VC






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






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






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






46. DL + FOH






47. DL + FOH






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






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






50. Goods Available for Sale - End Finished Goods