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






2. DL + FOH






3. DM - DL - FOH






4. Predicted cost






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






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






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






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






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






10. CM per unit / SP






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






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






13. DM + DL + FOH






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






15. Product Cost / Units Produced






16. FC / CM per unit






17. ∑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)






18. # 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






19. DL + FOH






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






21. DL + DM






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






23. Goods Available for Sale - End Finished Goods






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






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






26. VC per unit x Units Sold






27. Cost incurred






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. Property tax - property insurance - and property rent






30. Selling and Administrative






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






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






33. SP x Units Sold






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






35. COGM + Beg Finished Goods






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






37. Product and Period Costs






38. Sales Revenue - BE Revenue






39. Op Income - Income Taxes






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






41. The product being made






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






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






44. A little fixed & a little variable






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






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






47. Total Rev - Total VC






48. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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