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