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






2. Product Cost / Units Produced






3. VC per unit x Units Sold






4. The product being made






5. DL + DM






6. DL + FOH






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






8. SP x Units Sold






9. Goods Available for Sale - End Finished Goods






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






11. DL + FOH






12. DM - DL - FO






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






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)






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






16. Property tax - property insurance - and property rent






17. Op Income - Income Taxes






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






19. Advertising - Depreciation of Office Equipment - Shipping Costs






20. A little fixed & a little variable






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






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






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






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






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






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






27. SP-VC (per unit)






28. COGM + Beg Finished Goods






29. Rev - COGS






30. FC / CM per unit






31. DM - DL - FOH






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






33. Selling and Administrative






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






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






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






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






38. # 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






39. Sales Revenue - BE Revenue






40. Cost incurred






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






42. CM per unit / SP






43. DM + DL + FOH






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






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






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






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






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






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. Product and Period Costs