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






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






3. Product Cost / Units Produced






4. DL + FOH






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






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






7. Total Rev - Total VC






8. Cost incurred






9. Product and Period Costs






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






11. DM - DL - FOH






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






13. VC per unit x Units Sold






14. Op Income - Income Taxes






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






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






17. Selling and Administrative






18. Rev - COGS






19. COGM + Beg Finished Goods






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






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






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






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






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






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






26. The product being made






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






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






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






30. SP x Units Sold






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






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. Goods Available for Sale - End Finished Goods






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






35. Sales Revenue - BE Revenue






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






37. A little fixed & a little variable






38. DL + DM






39. FC / CM per unit






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






41. DM - DL - FO






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






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






44. CM per unit / SP






45. Property tax - property insurance - and property rent






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






47. DL + FOH






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






49. 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






50. Predicted cost