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