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. CM per unit / SP






2. Predicted cost






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






4. DL + FOH






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






6. FC / CM per unit






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






8. Property tax - property insurance - and property rent






9. Selling and Administrative






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






11. DL + FOH






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






13. Product and Period Costs






14. 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






15. Rev - COGS






16. DL + DM






17. SP-VC (per unit)






18. VC per unit x Units Sold






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






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






21. # 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






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






23. The product being made






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






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






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






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






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






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






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






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






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






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






34. A little fixed & a little variable






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






36. DM + DL + FOH






37. Cost incurred






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






39. Product Cost / Units Produced






40. Sales Revenue - BE Revenue






41. Total Rev - Total VC






42. COGM + Beg Finished Goods






43. DM - DL - FOH






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






45. Advertising - Depreciation of Office Equipment - Shipping Costs






46. ∑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)






47. DM - DL - FO






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






49. Goods Available for Sale - End Finished Goods






50. SP x Units Sold