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. A little fixed & a little variable






2. Property tax - property insurance - and property rent






3. Product and Period Costs






4. DM + DL + FOH






5. # 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






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






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






8. Cost incurred






9. Selling and Administrative






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






11. COGM + Beg Finished Goods






12. FC / CM per unit






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






14. Goods Available for Sale - End Finished Goods






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






16. Op Income - Income Taxes






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






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






19. DM - DL - FO






20. The product being made






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






22. CM per unit / SP






23. Product Cost / Units Produced






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






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






26. DM - DL - FOH






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






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






29. Sales Revenue - BE Revenue






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. ∑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)






32. 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






33. Predicted cost






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






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






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






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






38. VC per unit x Units Sold






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






40. Total Rev - Total VC






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






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






43. Advertising - Depreciation of Office Equipment - Shipping Costs






44. DL + DM






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






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






47. SP-VC (per unit)






48. DL + FOH






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






50. DL + FOH