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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. 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






2. ∑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)






3. Selling and Administrative






4. DM + DL + FOH






5. The product being made






6. Op Income - Income Taxes






7. Goods Available for Sale - End Finished Goods






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






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






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






11. DL + DM






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






13. COGM + Beg Finished Goods






14. DM - DL - FO






15. CM per unit / SP






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






17. VC per unit x Units Sold






18. FC / CM per unit






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






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






21. Sales Revenue - BE Revenue






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






23. Rev - COGS






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






25. SP x Units Sold






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






27. Product Cost / Units Produced






28. # 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






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






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






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






32. DL + FOH






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






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






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






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






37. Predicted cost






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






39. Property tax - property insurance - and property rent






40. Total Rev - Total VC






41. Cost incurred






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






43. Advertising - Depreciation of Office Equipment - Shipping Costs






44. DM - DL - FOH






45. Product and Period Costs






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






47. A little fixed & a little variable






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






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






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