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






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






3. COGM + Beg Finished Goods






4. Goods Available for Sale - End Finished Goods






5. DL + DM






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






7. Product Cost / Units Produced






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






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






10. Op Income - Income Taxes






11. SP x Units Sold






12. VC per unit x Units Sold






13. SP-VC (per unit)






14. Selling and Administrative






15. Cost incurred






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






17. Property tax - property insurance - and property rent






18. Rev - COGS






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






20. Sales Revenue - BE Revenue






21. A little fixed & a little variable






22. DM - DL - FO






23. Predicted cost






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






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






26. Total Rev - Total VC






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






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






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






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






31. DM + DL + FOH






32. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






35. DL + FOH






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






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






38. ∑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)






39. The product being made






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






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






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






43. 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






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






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






46. # 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






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






48. DL + FOH






49. Product and Period Costs






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