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Test your basic knowledge |
Cost Accounting Equations And More
Start Test
Study First
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. Quantities of various products (services) that constitute total unit sales of a company
Example of Period Costs
Sales Mix
MoS (formula)
Actual Cost
2. Amount by which budgeted (actual) revenue exceeds the BE Revenue.
Margin of Safety
Break Even Point
CoGMnf
Product Costs
3. Band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.
Relevant Range
Managerial Accounting
CoGMnf
Sales Mix
4. Rev - COGS
Conversion Cost
Gross Profit
Relevant Range
Variable Costs (VC)
5. Pay for Print: $100 for first 500 copies - $0.06 for each copy over 500.
Operating Income
Example of FO
Example of Mixed Cost
Relevant Range
6. Indirect and fixed costs related to the factory used for production.
Factory Overhead
Types of Inventorial Costs
Revenue
Ending Inventory
7. VC per unit x Units Sold
Variable Costs (VC)
Cost Object
DM Used
CM % (ratio)
8. The direct and variable costs related to the labor that goes into production.
Financial Accounting
Direct Cost
Direct Labor
Fixed Cost
9. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv
Financial Accounting
Product Cost (per unit)
CoGMnf
Degree of Op Leverage
10. Property tax - property insurance - and property rent
Example of FO
Conversion Costs
Mixed Cost (Semi-Variable)
DM Used
11. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
Goods Available for Sale
Example of Period Costs
Factory Overhead
MoS %
12. Can not be traced to the cost object in a cost-effective way (FO)
Classifications of Mfg Costs
Operating Leverage
Indirect Cost
Factory Overhead
13. Advertising - Depreciation of Office Equipment - Shipping Costs
Example of Period Costs
Example of Mixed Cost
Fixed Cost
Managerial Accounting
14. ∑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)
Sales Mix
Least Squares Regression Method
Gross Profit
Cost Driver
15. Costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM - DL)
Conversion Cost
Variable Cost
Goods Available for Sale
Managerial Accounting
16. DM - DL - FOH
Goods Available for Sale
Product Costs
Financial Accounting
Margin of Safety
17. Describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)
Sales Mix
Operating Leverage
Conversion Cost
Variable Cost
18. DM + DL + FOH
Total Mnf Costs Incurred
Sales Mix
Direct Labor
Mixed Cost (Semi-Variable)
19. Total Rev - Total VC
Contribution Margin (CM)
Budgeted Cost
Financial Accounting
Margin of Safety
20. Op Income - Income Taxes
Product Cost (per unit)
Net Income
Least Squares Regression Method
Actual Cost
21. Cost incurred
Actual Cost
Total Mnf Costs Incurred
COGS
Write the Equation (slope)
22. DL + DM
Prime Cost
MoS (in units)
Example of FO
Budgeted Cost
23. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC
Conversion Cost
Example of FO
Example of Period Costs
Operating Income
24. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
Example of Period Costs
Managerial Accounting
Margin of Safety
Degree of Op Leverage
25. Budgeted Sales(units) - BE Sales (units)
Direct Labor
DM Used
MoS (in units)
Net Income
26. When total revenue = total cost - Op Income = 0
Direct Cost
Fixed Cost
Break Even Point
Goods Available for Sale
27. BE Units x SP -or- FC / CM%
Example of FO
Relevant Range
BE Revenue
Example of Mixed Cost
28. Predicted cost
Contribution Margin (CM)
Budgeted Cost
Cost Volume Profit (CVP)
Cost Object
29. Can be traced to the cost object in a cost-effective way (DM - DL)
Contribution Margin (CM)
Direct Cost
Operating Leverage
Relevant Range
30. Direct - Indirect - Mixed - Fixed - Variable - etc.
Example of Mixed Cost
Degree of Op Leverage
Classifications of Mfg Costs
Conversion Cost
31. Beg Inv + Purchased DM - Cost of DM Available for use
Direct Materials
DM Used
Product Cost (per unit)
Ending Inventory
32. SP x Units Sold
DM Used
MoS (formula)
Gross Profit
Revenue
33. Product and Period Costs
Least Squares Regression Method
Goods Available for Sale
Types of Inventorial Costs
Sales Mix
34. Follows GAAP rules - summarized information for external users.
CM % (ratio)
Budgeted Cost
BE Revenue
Financial Accounting
35. Sales Revenue - BE Revenue
Product Cost (per unit)
Variable Costs (VC)
MoS (formula)
CM (per unit)
36. Product Cost / Units Produced
Direct Cost
Product Cost (per unit)
High Low Method
Operating Leverage
37. Drives the cost of production. ex. labor hrs - materials - machine hours
Cost Driver
Operating Leverage
Classifications of Mfg Costs
Sales Mix
38. The product being made
Cost Object
Direct Labor
Direct Materials
Types of Inventorial Costs
39. CM per unit / SP
Direct Cost
CM % (ratio)
Factory Overhead
Prime Cost
40. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
Indirect Cost
Fixed Cost
MoS (in units)
Example of FO
41. FC / CM per unit
Budgeted Cost
BE Units
Gross Profit
CM % (ratio)
42. # 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
High Low Method
Ending Inventory
Example of FO
CoGMnf
43. SP-VC (per unit)
CM (per unit)
CoGMnf
MoS (in units)
Types of Inventorial Costs
44. The direct and variable costs that can be traced back to the cost object.
Actual Cost
Direct Labor
Goods Available for Sale
Direct Materials
45. COGM + Beg Finished Goods
Total Mnf Costs Incurred
Goods Available for Sale
High Low Method
Cost Object
46. Selling and Administrative
Margin of Safety
High Low Method
Example of FO
Period Costs
47. Goods Available for Sale - End Finished Goods
COGS
Managerial Accounting
Goods Available for Sale
Variable Costs (VC)
48. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.
Variable Costs (VC)
Managerial Accounting
Product Costs
Example of FO
49. A little fixed & a little variable
High Low Method
Mixed Cost (Semi-Variable)
Example of Mixed Cost
Cost Volume Profit (CVP)
50. 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
Contribution Margin (CM)
MoS %
Direct Labor
Cost Volume Profit (CVP)