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






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






3. SP x Units Sold






4. DL + DM






5. A little fixed & a little variable






6. # 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






7. Goods Available for Sale - End Finished Goods






8. Cost incurred






9. COGM + Beg Finished Goods






10. FC / CM per unit






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






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






13. ∑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)






14. Op Income - Income Taxes






15. Rev - COGS






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






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






18. DL + FOH






19. Predicted cost






20. CM per unit / SP






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






22. DL + FOH






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






24. DM - DL - FO






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






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






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






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






29. Product Cost / Units Produced






30. 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






31. Selling and Administrative






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






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






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






35. VC per unit x Units Sold






36. DM - DL - FOH






37. Property tax - property insurance - and property rent






38. The product being made






39. DM + DL + FOH






40. Advertising - Depreciation of Office Equipment - Shipping Costs






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






42. Product and Period Costs






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






44. Sales Revenue - BE Revenue






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






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






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






48. Total Rev - Total VC






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






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