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. ∑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)






2. DM + DL + FOH






3. # 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






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






5. CM per unit / SP






6. Total Rev - Total VC






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






8. 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






9. DM - DL - FOH






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






11. Selling and Administrative






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






13. SP x Units Sold






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






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






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






17. Goods Available for Sale - End Finished Goods






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






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






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






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






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






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






24. Advertising - Depreciation of Office Equipment - Shipping Costs






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






26. The product being made






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






28. Cost incurred






29. Op Income - Income Taxes






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






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






32. DL + DM






33. Product and Period Costs






34. SP-VC (per unit)






35. Predicted cost






36. Property tax - property insurance - and property rent






37. VC per unit x Units Sold






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






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






40. DM - DL - FO






41. Rev - COGS






42. A little fixed & a little variable






43. FC / CM per unit






44. DL + FOH






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






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






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






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






49. DL + FOH






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