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. Rev - COGS






3. Predicted cost






4. # 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






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






6. Property tax - property insurance - and property rent






7. DM - DL - FO






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






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






10. COGM + Beg Finished Goods






11. SP-VC (per unit)






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






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






14. Op Income - Income Taxes






15. Sales Revenue - BE Revenue






16. VC per unit x Units Sold






17. SP x Units Sold






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






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






20. The product being made






21. Product Cost / Units Produced






22. Product and Period Costs






23. ∑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)






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






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






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






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






28. DM + DL + FOH






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






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






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






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






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






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






35. Goods Available for Sale - End Finished Goods






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






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






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






39. Selling and Administrative






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






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






42. Cost incurred






43. FC / CM per unit






44. DM - DL - FOH






45. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






48. Total Rev - Total VC






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






50. DL + FOH