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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. Rev - COGS






2. Selling and Administrative






3. DL + DM






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






5. # 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






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






7. SP x Units Sold






8. Op Income - Income Taxes






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






10. COGM + Beg Finished Goods






11. DL + FOH






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






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






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






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






16. Predicted cost






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






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






19. A little fixed & a little variable






20. DM - DL - FO






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






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






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






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






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






26. Total Rev - Total VC






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






28. Product Cost / Units Produced






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






30. Property tax - property insurance - and property rent






31. SP-VC (per unit)






32. ∑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)






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






34. DL + FOH






35. Sales Revenue - BE Revenue






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






37. Product and Period Costs






38. The product being made






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






40. DM - DL - FOH






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






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






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






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






46. FC / CM per unit






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






48. VC per unit x Units Sold






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






50. Goods Available for Sale - End Finished Goods