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






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






3. FC / CM per unit






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






5. Product Cost / Units Produced






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






7. Rev - COGS






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






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






10. CM per unit / SP






11. DL + FOH






12. 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






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






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






15. The product being made






16. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






19. Selling and Administrative






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






21. DL + FOH






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






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






24. DM - DL - FO






25. SP-VC (per unit)






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






27. Product and Period Costs






28. DM + DL + FOH






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






30. Goods Available for Sale - End Finished Goods






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






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






33. Cost incurred






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






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






36. SP x Units Sold






37. A little fixed & a little variable






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






39. Sales Revenue - BE Revenue






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






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






42. # 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






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. DL + DM






45. Op Income - Income Taxes






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






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






48. VC per unit x Units Sold






49. Predicted cost






50. Property tax - property insurance - and property rent