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