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. CM per unit / SP






2. Property tax - property insurance - and property rent






3. Op Income - Income Taxes






4. DL + DM






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






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






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






9. FC / CM per unit






10. DL + FOH






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






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






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






14. DM - DL - FO






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






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






18. Cost incurred






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






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






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






22. DL + FOH






23. DM - DL - FOH






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






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






26. DM + DL + FOH






27. 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






28. SP x Units Sold






29. Advertising - Depreciation of Office Equipment - Shipping Costs






30. VC per unit x Units Sold






31. ∑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)






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






33. Predicted cost






34. The product being made






35. Sales Revenue - BE Revenue






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






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






38. Product and Period Costs






39. SP-VC (per unit)






40. Goods Available for Sale - End Finished Goods






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






42. Rev - COGS






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






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






45. Total Rev - Total VC






46. COGM + Beg Finished Goods






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






48. Selling and Administrative






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






50. A little fixed & a little variable