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. Follows GAAP rules - summarized information for external users.






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






3. DL + DM






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






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






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






7. Goods Available for Sale - End Finished Goods






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






9. DL + FOH






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






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. COGM + Beg Finished Goods






13. DM - DL - FO






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






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






16. The product being made






17. Cost incurred






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






19. Product and Period Costs






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






21. Rev - COGS






22. Sales Revenue - BE Revenue






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






24. # 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






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






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






27. Advertising - Depreciation of Office Equipment - Shipping Costs






28. DM + DL + FOH






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






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






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






32. VC per unit x Units Sold






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






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






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






36. Product Cost / Units Produced






37. A little fixed & a little variable






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






39. CM per unit / SP






40. Predicted cost






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






42. SP x Units Sold






43. 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






44. DL + FOH






45. SP-VC (per unit)






46. Op Income - Income Taxes






47. Total Rev - Total VC






48. Selling and Administrative






49. Property tax - property insurance - and property rent






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