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