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. # 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






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






3. FC / CM per unit






4. DL + FOH






5. VC per unit x Units Sold






6. Total Rev - Total VC






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






8. SP x Units Sold






9. 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






10. Product Cost / Units Produced






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






12. The product being made






13. CM per unit / SP






14. A little fixed & a little variable






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






16. Sales Revenue - BE Revenue






17. DM - DL - FO






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






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






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






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






22. DM - DL - FOH






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






24. Cost incurred






25. COGM + Beg Finished Goods






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






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






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






29. ∑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)






30. Goods Available for Sale - End Finished Goods






31. DM + DL + FOH






32. Selling and Administrative






33. Product and Period Costs






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






35. Rev - COGS






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






37. DL + DM






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






39. Op Income - Income Taxes






40. Predicted cost






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






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






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






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






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






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






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






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






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






50. Property tax - property insurance - and property rent