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Test your basic knowledge |
Cost Accounting Equations And More
Start Test
Study First
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. DL + DM
Fixed Cost
Sales Mix
Prime Cost
Example of Period Costs
2. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
Product Cost (per unit)
Cost of Making a Product
Degree of Op Leverage
DM Used
3. A little fixed & a little variable
Gross Profit
MoS %
Mixed Cost (Semi-Variable)
Actual Cost
4. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv
COGS
Budgeted Cost
CoGMnf
Gross Profit
5. Property tax - property insurance - and property rent
Example of FO
Direct Materials
BE Revenue
Ending Inventory
6. Selling and Administrative
Period Costs
Variable Costs (VC)
Least Squares Regression Method
Operating Leverage
7. Amount by which budgeted (actual) revenue exceeds the BE Revenue.
Degree of Op Leverage
CoGMnf
Write the Equation (slope)
Margin of Safety
8. Beg Inv + Purchased DM - Cost of DM Available for use
Cost of Making a Product
CM % (ratio)
Ending Inventory
Total Mnf Costs Incurred
9. Direct - Indirect - Mixed - Fixed - Variable - etc.
Classifications of Mfg Costs
Fixed Cost
Period Costs
BE Units
10. Costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM - DL)
Period Costs
Variable Cost
Relevant Range
Direct Materials
11. BE Units x SP -or- FC / CM%
Conversion Cost
MoS %
Sales Mix
BE Revenue
12. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
Example of FO
Direct Materials
Fixed Cost
CM % (ratio)
13. FC / CM per unit
Conversion Costs
Direct Cost
BE Units
Gross Profit
14. Y = FC + (VC Per Unit x Activity Measure or Unit)
Period Costs
Total Mnf Costs Incurred
Write the Equation (slope)
Variable Costs (VC)
15. Rev - COGS
Relevant Range
Contribution Margin (CM)
Gross Profit
Direct Materials
16. Goods Available for Sale - End Finished Goods
Product Cost (per unit)
Factory Overhead
COGS
Direct Cost
17. DM - DL - FOH
Gross Profit
Goods Available for Sale
Product Costs
Example of Mixed Cost
18. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
Operating Leverage
MoS %
Example of Period Costs
Operating Income
19. Op Income - Income Taxes
Indirect Cost
Net Income
Operating Leverage
Variable Costs (VC)
20. Product and Period Costs
Types of Inventorial Costs
Example of Period Costs
Goods Available for Sale
Product Cost (per unit)
21. The direct and variable costs that can be traced back to the cost object.
Budgeted Cost
Degree of Op Leverage
Financial Accounting
Direct Materials
22. Quantities of various products (services) that constitute total unit sales of a company
Cost Driver
Indirect Cost
Actual Cost
Sales Mix
23. Cost incurred
COGS
DM Used
Least Squares Regression Method
Actual Cost
24. CM per unit / SP
Variable Costs (VC)
CM % (ratio)
Indirect Cost
Least Squares Regression Method
25. Sales Revenue - BE Revenue
Factory Overhead
MoS (formula)
Classifications of Mfg Costs
Sales Mix
26. DL + FOH
Direct Labor
Conversion Cost
Cost Volume Profit (CVP)
BE Units
27. Total Rev - Total VC
BE Units
Budgeted Cost
Contribution Margin (CM)
Product Costs
28. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.
COGS
CM % (ratio)
Prime Cost
Managerial Accounting
29. Band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.
DM Used
Operating Leverage
Relevant Range
Indirect Cost
30. Can not be traced to the cost object in a cost-effective way (FO)
Direct Materials
BE Revenue
Indirect Cost
Least Squares Regression Method
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)
BE Units
Least Squares Regression Method
Break Even Point
Example of Mixed Cost
32. The direct and variable costs related to the labor that goes into production.
Net Income
Cost of Making a Product
Classifications of Mfg Costs
Direct Labor
33. Predicted cost
Budgeted Cost
CoGMnf
CM (per unit)
Cost Object
34. Describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)
Cost of Making a Product
Operating Leverage
Break Even Point
Prime Cost
35. SP x Units Sold
Direct Cost
Revenue
Goods Available for Sale
Variable Costs (VC)
36. Drives the cost of production. ex. labor hrs - materials - machine hours
Revenue
Cost Driver
Product Costs
MoS (in units)
37. Budgeted Sales(units) - BE Sales (units)
Indirect Cost
MoS (in units)
Product Costs
Financial Accounting
38. Advertising - Depreciation of Office Equipment - Shipping Costs
Variable Cost
Example of Period Costs
BE Units
Conversion Costs
39. Indirect and fixed costs related to the factory used for production.
Break Even Point
MoS (formula)
Mixed Cost (Semi-Variable)
Factory Overhead
40. 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
Goods Available for Sale
Classifications of Mfg Costs
Cost Volume Profit (CVP)
Product Costs
41. When total revenue = total cost - Op Income = 0
Break Even Point
Variable Costs (VC)
Direct Materials
Gross Profit
42. DM - DL - FO
Actual Cost
BE Revenue
Cost of Making a Product
Example of FO
43. COGM + Beg Finished Goods
CM (per unit)
Variable Costs (VC)
Direct Materials
Goods Available for Sale
44. Pay for Print: $100 for first 500 copies - $0.06 for each copy over 500.
Example of Mixed Cost
Break Even Point
MoS %
Budgeted Cost
45. DL + FOH
Least Squares Regression Method
Example of Period Costs
Conversion Costs
Total Mnf Costs Incurred
46. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC
Prime Cost
COGS
Contribution Margin (CM)
Operating Income
47. Follows GAAP rules - summarized information for external users.
Variable Costs (VC)
Sales Mix
Conversion Costs
Financial Accounting
48. Can be traced to the cost object in a cost-effective way (DM - DL)
Goods Available for Sale
Direct Cost
Prime Cost
Budgeted Cost
49. Beg Inv of DM (Jan 1) + Purchases of DM - End Inv of DM (Dec 31)
Ending Inventory
Conversion Costs
Direct Labor
DM Used
50. The product being made
Cost Object
Degree of Op Leverage
Direct Materials
MoS (in units)