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






2. Sales Revenue - BE Revenue






3. A little fixed & a little variable






4. DM - DL - FO






5. Total Rev - Total VC






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






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






8. DM - DL - FOH






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






10. VC per unit x Units Sold






11. Product Cost / Units Produced






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






13. Rev - COGS






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






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






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






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






18. FC / CM per unit






19. 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






20. The product being made






21. SP x Units Sold






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






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






24. DL + DM






25. SP-VC (per unit)






26. COGM + Beg Finished Goods






27. # 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






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






29. Property tax - property insurance - and property rent






30. DM + DL + FOH






31. DL + FOH






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






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






34. DL + FOH






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






36. Op Income - Income Taxes






37. Goods Available for Sale - End Finished Goods






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






39. Selling and Administrative






40. Cost incurred






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






42. Product and Period Costs






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






44. Advertising - Depreciation of Office Equipment - Shipping Costs






45. CM per unit / SP






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






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






48. Predicted cost






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






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