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. Product Cost / Units Produced






2. DL + FOH






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






4. Advertising - Depreciation of Office Equipment - Shipping Costs






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






6. DM + DL + FOH






7. Rev - COGS






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






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






10. COGM + Beg Finished Goods






11. A little fixed & a little variable






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






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






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






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






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






17. 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






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






19. SP-VC (per unit)






20. Op Income - Income Taxes






21. CM per unit / SP






22. FC / CM per unit






23. VC per unit x Units Sold






24. Product and Period Costs






25. Property tax - property insurance - and property rent






26. DL + FOH






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






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






29. ∑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)






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






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






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






33. Predicted cost






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






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






36. DM - DL - FO






37. DM - DL - FOH






38. Total Rev - Total VC






39. SP x Units Sold






40. Goods Available for Sale - End Finished Goods






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






42. DL + DM






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






44. The product being made






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






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






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






48. Sales Revenue - BE Revenue






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






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