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. The product being made






3. Product and Period Costs






4. Cost incurred






5. DM + DL + FOH






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






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






8. Goods Available for Sale - End Finished Goods






9. # 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






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






11. ∑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)






12. Sales Revenue - BE Revenue






13. DL + FOH






14. DL + FOH






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






16. COGM + Beg Finished Goods






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






18. DM - DL - FO






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






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






21. VC per unit x Units Sold






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






23. Selling and Administrative






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






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






26. Rev - COGS






27. SP x Units Sold






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






29. SP-VC (per unit)






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






31. FC / CM per unit






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






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






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






35. DM - DL - FOH






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






37. Product Cost / Units Produced






38. Total Rev - Total VC






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






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






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






42. Advertising - Depreciation of Office Equipment - Shipping Costs






43. Predicted cost






44. Property tax - property insurance - and property rent






45. DL + DM






46. Op Income - Income Taxes






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






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






49. 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






50. CM per unit / SP