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