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. Total Rev - Total VC






2. DL + FOH






3. Product Cost / Units Produced






4. DM + DL + FOH






5. ∑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)






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






7. A little fixed & a little variable






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






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






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






11. DL + DM






12. # 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






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






14. DM - DL - FOH






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






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






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






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






19. Product and Period Costs






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






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






22. FC / CM per unit






23. Property tax - property insurance - and property rent






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






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






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






27. COGM + Beg Finished Goods






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






29. Selling and Administrative






30. Rev - COGS






31. DL + FOH






32. SP x Units Sold






33. Cost incurred






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






35. Predicted cost






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






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






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






39. Op Income - Income Taxes






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






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






42. Advertising - Depreciation of Office Equipment - Shipping Costs






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






44. Goods Available for Sale - End Finished Goods






45. DM - DL - FO






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






47. SP-VC (per unit)






48. 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






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






50. CM per unit / SP