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. A little fixed & a little variable






2. DM - DL - FOH






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






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






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






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






7. Property tax - property insurance - and property rent






8. Goods Available for Sale - End Finished Goods






9. Rev - COGS






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






11. ∑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)






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






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






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






15. DL + FOH






16. Op Income - Income Taxes






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






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






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






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






21. FC / CM per unit






22. COGM + Beg Finished Goods






23. The product being made






24. Cost incurred






25. CM per unit / SP






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






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






28. Predicted cost






29. SP-VC (per unit)






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






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






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






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






34. SP x Units Sold






35. Selling and Administrative






36. Sales Revenue - BE Revenue






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






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






39. DM - DL - FO






40. Product Cost / Units Produced






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






42. 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






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






44. VC per unit x Units Sold






45. Product and Period Costs






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






47. Total Rev - Total VC






48. DL + FOH






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






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