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. Sales Revenue - BE Revenue






2. CM per unit / SP






3. DM - DL - FO






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






5. Property tax - property insurance - and property rent






6. Selling and Administrative






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






8. Product and Period Costs






9. FC / CM per unit






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






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






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






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






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






15. ∑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)






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






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






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






19. # 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






20. COGM + Beg Finished Goods






21. VC per unit x Units Sold






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






23. A little fixed & a little variable






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






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






26. SP-VC (per unit)






27. DL + DM






28. DM + DL + FOH






29. Predicted cost






30. SP x Units Sold






31. Advertising - Depreciation of Office Equipment - Shipping Costs






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






33. Total Rev - Total VC






34. Cost incurred






35. Op Income - Income Taxes






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






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






38. Goods Available for Sale - End Finished Goods






39. Rev - COGS






40. DM - DL - FOH






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






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






43. Product Cost / Units Produced






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






45. DL + FOH






46. 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






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






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






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






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