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






2. VC per unit x Units Sold






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






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






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






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






7. Product Cost / Units Produced






8. Sales Revenue - BE Revenue






9. FC / CM per unit






10. A little fixed & a little variable






11. Total Rev - Total VC






12. # 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






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






14. Product and Period Costs






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






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






17. COGM + Beg Finished Goods






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






19. Property tax - property insurance - and property rent






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






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






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






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






24. DM + DL + FOH






25. DM - DL - FO






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






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






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






29. DL + FOH






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






31. SP-VC (per unit)






32. DL + DM






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






34. SP x Units Sold






35. DL + FOH






36. Op Income - Income Taxes






37. Goods Available for Sale - End Finished Goods






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






39. DM - DL - FOH






40. Predicted cost






41. 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






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






43. CM per unit / SP






44. Selling and Administrative






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






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






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






48. Rev - COGS






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






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