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. SP x Units Sold






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






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






4. DM + DL + FOH






5. Op Income - Income Taxes






6. FC / CM per unit






7. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






10. DM - DL - FO






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






12. CM per unit / SP






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






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






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






16. DL + FOH






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






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






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






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






21. DL + FOH






22. DL + DM






23. COGM + Beg Finished Goods






24. Product and Period Costs






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






26. Sales Revenue - BE Revenue






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






28. VC per unit x Units Sold






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






30. The product being made






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






32. SP-VC (per unit)






33. DM - DL - FOH






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






35. 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






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






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)






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






39. Rev - COGS






40. Total Rev - Total VC






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






42. Selling and Administrative






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






44. Goods Available for Sale - End Finished Goods






45. Product Cost / Units Produced






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






47. Property tax - property insurance - and property rent






48. Cost incurred






49. A little fixed & a little variable






50. Predicted cost