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






2. The product being made






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






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






5. DL + FOH






6. Op Income - Income Taxes






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






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






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






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






11. DM + DL + FOH






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






13. DL + DM






14. Total Rev - Total VC






15. A little fixed & a little variable






16. Predicted cost






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






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






19. DM - DL - FOH






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






21. COGM + Beg Finished Goods






22. DL + FOH






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






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






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






26. 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






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






28. FC / CM per unit






29. Property tax - property insurance - and property rent






30. ∑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)






31. BE Units x SP -or- FC / CM%






32. Cost incurred






33. Can be traced to the cost object in a cost-effective way (DM - DL)






34. Product Cost / Units Produced






35. SP x Units Sold






36. When total revenue = total cost - Op Income = 0






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






38. Sales Revenue - BE Revenue






39. Product and Period Costs






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






41. # 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






42. Amount by which budgeted (actual) revenue exceeds the BE Revenue.






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






44. DM - DL - FO






45. CM per unit / SP






46. SP-VC (per unit)






47. Rev - COGS






48. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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