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






2. A little fixed & a little variable






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






4. Product Cost / Units Produced






5. CM per unit / SP






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






7. DM - DL - FO






8. The product being made






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






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






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






12. Selling and Administrative






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






14. Rev - COGS






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






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






17. DL + FOH






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






19. Goods Available for Sale - End Finished Goods






20. DL + DM






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






22. Property tax - property insurance - and property rent






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






24. Sales Revenue - BE Revenue






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






26. DL + FOH






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






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






29. Advertising - Depreciation of Office Equipment - Shipping Costs






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






31. Predicted cost






32. VC per unit x Units Sold






33. Cost incurred






34. Total Rev - Total VC






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






36. DM - DL - FOH






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






38. DM + DL + FOH






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






40. SP x Units Sold






41. Product and Period Costs






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






43. COGM + Beg Finished Goods






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






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






46. SP-VC (per unit)






47. ∑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)






48. FC / CM per unit






49. Op Income - Income Taxes






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