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