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






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






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






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






5. DM - DL - FO






6. Sales Revenue - BE Revenue






7. The product being made






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






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






10. COGM + Beg Finished Goods






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






12. DL + FOH






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






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






15. DL + FOH






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






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






18. CM per unit / SP






19. DM + DL + FOH






20. DM - DL - FOH






21. Total Rev - Total VC






22. FC / CM per unit






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






24. Advertising - Depreciation of Office Equipment - Shipping Costs






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






26. DL + DM






27. A little fixed & a little variable






28. # 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






29. VC per unit x Units Sold






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






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






32. Selling and Administrative






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






34. SP-VC (per unit)






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






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






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






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






39. Predicted cost






40. Goods Available for Sale - End Finished Goods






41. SP x Units Sold






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






43. Product Cost / Units Produced






44. Property tax - property insurance - and property rent






45. Rev - COGS






46. Product and Period Costs






47. Cost incurred






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






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






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