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. Selling and Administrative






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






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






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






6. Product Cost / Units Produced






7. 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






8. DL + DM






9. A little fixed & a little variable






10. VC per unit x Units Sold






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






12. The product being made






13. Goods Available for Sale - End Finished Goods






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






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






16. Op Income - Income Taxes






17. Product and Period Costs






18. Cost incurred






19. Advertising - Depreciation of Office Equipment - Shipping Costs






20. COGM + Beg Finished Goods






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






22. DM - DL - FOH






23. FC / CM per unit






24. DL + FOH






25. DM - DL - FO






26. DM + DL + FOH






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






28. DL + FOH






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






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






31. Rev - COGS






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






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






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






35. # 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






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






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






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






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






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






41. Sales Revenue - BE Revenue






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






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






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






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






46. Property tax - property insurance - and property rent






47. Predicted cost






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






49. ∑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)






50. Total Rev - Total VC