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






2. Product and Period Costs






3. A little fixed & a little variable






4. Property tax - property insurance - and property rent






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






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






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






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






9. SP x Units Sold






10. FC / CM per unit






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






12. Sales Revenue - BE Revenue






13. DM - DL - FOH






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






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






16. ∑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)






17. Op Income - Income Taxes






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






19. The product being made






20. 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






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






22. Cost incurred






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






24. VC per unit x Units Sold






25. Total Rev - Total VC






26. Advertising - Depreciation of Office Equipment - Shipping Costs






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






28. DM + DL + FOH






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






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






31. CM per unit / SP






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






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






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






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






36. DM - DL - FO






37. SP-VC (per unit)






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






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






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






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






42. DL + DM






43. Goods Available for Sale - End Finished Goods






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






45. DL + FOH






46. # 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






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






48. Rev - COGS






49. COGM + Beg Finished Goods






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