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






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






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






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






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






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






7. COGM + Beg Finished Goods






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






9. DL + FOH






10. CM per unit / SP






11. ∑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)






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






13. DM + DL + FOH






14. VC per unit x Units Sold






15. Cost incurred






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






17. # 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






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






19. Total Rev - Total VC






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






21. DL + DM






22. Product Cost / Units Produced






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






24. Property tax - property insurance - and property rent






25. Op Income - Income Taxes






26. FC / CM per unit






27. SP-VC (per unit)






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






29. Selling and Administrative






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






31. Advertising - Depreciation of Office Equipment - Shipping Costs






32. DM - DL - FO






33. Goods Available for Sale - End Finished Goods






34. Predicted cost






35. SP x Units Sold






36. The product being made






37. DM - DL - FOH






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






39. 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






40. Product and Period Costs






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






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






43. DL + FOH






44. A little fixed & a little variable






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






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






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






48. Sales Revenue - BE Revenue






49. Rev - COGS






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