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. Predicted cost






2. Goods Available for Sale - End Finished Goods






3. DL + DM






4. The product being made






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






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






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






8. FC / CM per unit






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






10. Cost incurred






11. SP x Units Sold






12. DM + DL + FOH






13. 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






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






15. Op Income - Income Taxes






16. SP-VC (per unit)






17. Advertising - Depreciation of Office Equipment - Shipping Costs






18. # 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






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






20. ∑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)






21. DM - DL - FO






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






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






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






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






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






27. Total Rev - Total VC






28. Selling and Administrative






29. Product Cost / Units Produced






30. DL + FOH






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






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






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






34. DL + FOH






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






36. Property tax - property insurance - and property rent






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






38. A little fixed & a little variable






39. Rev - COGS






40. DM - DL - FOH






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






42. CM per unit / SP






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






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






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






46. VC per unit x Units Sold






47. Sales Revenue - BE Revenue






48. COGM + Beg Finished Goods






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






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