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






2. # 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






3. CM per unit / SP






4. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






7. FC / CM per unit






8. Op Income - Income Taxes






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






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






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






12. A little fixed & a little variable






13. SP x Units Sold






14. DL + FOH






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. Product Cost / Units Produced






17. Predicted cost






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






19. DM - DL - FO






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






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






22. DL + DM






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






24. 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






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






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






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






28. Rev - COGS






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






30. Product and Period Costs






31. SP-VC (per unit)






32. The product being made






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






34. Sales Revenue - BE Revenue






35. DM + DL + FOH






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






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






38. COGM + Beg Finished Goods






39. ∑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)






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






41. Goods Available for Sale - End Finished Goods






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






43. Selling and Administrative






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






45. VC per unit x Units Sold






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






47. Total Rev - Total VC






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






49. Cost incurred






50. DL + FOH