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






2. COGM + Beg Finished Goods






3. Op Income - Income Taxes






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






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






6. DM - DL - FO






7. DM - DL - FOH






8. DL + FOH






9. Product and Period Costs






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






11. # 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






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






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






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






15. Goods Available for Sale - End Finished Goods






16. Property tax - property insurance - and property rent






17. VC per unit x Units Sold






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






19. The product being made






20. A little fixed & a little variable






21. Selling and Administrative






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






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






24. DL + FOH






25. 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






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






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






28. Sales Revenue - BE Revenue






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






30. Total Rev - Total VC






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






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






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






34. DL + DM






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






36. ∑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)






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






38. Product Cost / Units Produced






39. DM + DL + FOH






40. SP x Units Sold






41. SP-VC (per unit)






42. Predicted cost






43. FC / CM per unit






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






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






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






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






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






49. Rev - COGS






50. Advertising - Depreciation of Office Equipment - Shipping Costs