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






2. CM per unit / SP






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.






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






5. COGM + Beg Finished Goods






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






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






8. Sales Revenue - BE Revenue






9. Predicted cost






10. Selling and Administrative






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






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






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






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






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






16. Product and Period Costs






17. VC per unit x Units Sold






18. FC / CM per unit






19. DM - DL - FO






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






21. Product Cost / Units Produced






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






23. DL + DM






24. Advertising - Depreciation of Office Equipment - Shipping Costs






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






26. Cost incurred






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






28. 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






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






30. SP x Units Sold






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






32. DM - DL - FOH






33. Total Rev - Total VC






34. A little fixed & a little variable






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






36. Op Income - Income Taxes






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






38. Property tax - property insurance - and property rent






39. SP-VC (per unit)






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






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






42. Goods Available for Sale - End Finished Goods






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






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






45. DL + FOH






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






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






48. DL + FOH






49. # 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






50. Rev - COGS