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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. CM per unit / SP
Example of FO
CM % (ratio)
Write the Equation (slope)
MoS %
2. Predicted cost
Gross Profit
Break Even Point
Direct Cost
Budgeted Cost
3. When total revenue = total cost - Op Income = 0
Break Even Point
CM (per unit)
Cost Volume Profit (CVP)
CM % (ratio)
4. DL + FOH
Example of FO
Conversion Costs
DM Used
BE Units
5. Costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
Cost of Making a Product
Fixed Cost
Ending Inventory
Direct Labor
6. FC / CM per unit
BE Units
COGS
Contribution Margin (CM)
Break Even Point
7. Future orientation - helps managers make decisions - No GAAP - detailed information for Internal Users.
CM % (ratio)
Fixed Cost
Managerial Accounting
Cost Driver
8. Property tax - property insurance - and property rent
Gross Profit
Product Cost (per unit)
Example of FO
BE Revenue
9. Selling and Administrative
Break Even Point
Example of Mixed Cost
Period Costs
Goods Available for Sale
10. MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
Goods Available for Sale
MoS %
MoS (formula)
DM Used
11. DL + FOH
CoGMnf
Conversion Costs
MoS (in units)
Conversion Cost
12. Can be traced to the cost object in a cost-effective way (DM - DL)
Direct Cost
High Low Method
Fixed Cost
Period Costs
13. Product and Period Costs
Types of Inventorial Costs
Example of Period Costs
Example of FO
Ending Inventory
14. 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
Write the Equation (slope)
Financial Accounting
Example of FO
Cost Volume Profit (CVP)
15. Rev - COGS
Indirect Cost
Gross Profit
Product Cost (per unit)
Example of Mixed Cost
16. DL + DM
Direct Cost
Prime Cost
Example of FO
Margin of Safety
17. SP-VC (per unit)
Cost Volume Profit (CVP)
Conversion Cost
CM (per unit)
Cost of Making a Product
18. VC per unit x Units Sold
Variable Costs (VC)
Gross Profit
Fixed Cost
Goods Available for Sale
19. Beg Inv of DM (Jan 1) + Purchases of DM - End Inv of DM (Dec 31)
CoGMnf
DM Used
Types of Inventorial Costs
Direct Labor
20. Amount by which budgeted (actual) revenue exceeds the BE Revenue.
Margin of Safety
Break Even Point
Relevant Range
Conversion Cost
21. # 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
High Low Method
Write the Equation (slope)
Degree of Op Leverage
Product Costs
22. Follows GAAP rules - summarized information for external users.
Financial Accounting
Conversion Costs
COGS
CM % (ratio)
23. The product being made
Actual Cost
Least Squares Regression Method
Cost Object
Product Cost (per unit)
24. Gross Profit - Sales & Admin Exp -or- Rev - VC - FC
Ending Inventory
Direct Cost
Variable Costs (VC)
Operating Income
25. Budgeted Sales(units) - BE Sales (units)
BE Units
Variable Cost
MoS (in units)
Operating Leverage
26. The direct and variable costs related to the labor that goes into production.
Relevant Range
BE Revenue
Direct Labor
Operating Income
27. Quantities of various products (services) that constitute total unit sales of a company
Sales Mix
MoS (in units)
Revenue
Variable Cost
28. Beg WIP Inv + Total Mnf Costs Incurred-End WIP Inv
Product Costs
CoGMnf
Types of Inventorial Costs
Financial Accounting
29. The direct and variable costs that can be traced back to the cost object.
Ending Inventory
Conversion Cost
Direct Materials
Indirect Cost
30. Band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.
Net Income
Relevant Range
Sales Mix
MoS (formula)
31. Y = FC + (VC Per Unit x Activity Measure or Unit)
Direct Materials
CM % (ratio)
Variable Costs (VC)
Write the Equation (slope)
32. Describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)
Conversion Costs
Product Cost (per unit)
Goods Available for Sale
Operating Leverage
33. Pay for Print: $100 for first 500 copies - $0.06 for each copy over 500.
Example of Period Costs
Example of Mixed Cost
DM Used
Budgeted Cost
34. A little fixed & a little variable
Least Squares Regression Method
Mixed Cost (Semi-Variable)
Budgeted Cost
Break Even Point
35. CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
Prime Cost
BE Units
Factory Overhead
Degree of Op Leverage
36. DM + DL + FOH
Product Costs
Total Mnf Costs Incurred
Direct Labor
Contribution Margin (CM)
37. Cost incurred
Actual Cost
Period Costs
MoS (in units)
Cost Volume Profit (CVP)
38. Indirect and fixed costs related to the factory used for production.
MoS %
Cost Driver
MoS (in units)
Factory Overhead
39. Product Cost / Units Produced
Product Cost (per unit)
Operating Income
Actual Cost
Product Costs
40. Sales Revenue - BE Revenue
Conversion Costs
Direct Cost
MoS (formula)
CM % (ratio)
41. Total Rev - Total VC
DM Used
Contribution Margin (CM)
Mixed Cost (Semi-Variable)
Product Costs
42. COGM + Beg Finished Goods
Types of Inventorial Costs
Total Mnf Costs Incurred
Mixed Cost (Semi-Variable)
Goods Available for Sale
43. DM - DL - FOH
Conversion Costs
Classifications of Mfg Costs
Product Costs
Mixed Cost (Semi-Variable)
44. Direct - Indirect - Mixed - Fixed - Variable - etc.
Break Even Point
MoS %
Classifications of Mfg Costs
MoS (in units)
45. Advertising - Depreciation of Office Equipment - Shipping Costs
Prime Cost
Margin of Safety
MoS %
Example of Period Costs
46. ∑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)
Least Squares Regression Method
Classifications of Mfg Costs
Prime Cost
Write the Equation (slope)
47. DM - DL - FO
Cost of Making a Product
MoS (formula)
Period Costs
Gross Profit
48. BE Units x SP -or- FC / CM%
Gross Profit
Relevant Range
Conversion Costs
BE Revenue
49. Goods Available for Sale - End Finished Goods
Cost Driver
COGS
Fixed Cost
Cost Volume Profit (CVP)
50. SP x Units Sold
Break Even Point
DM Used
Revenue
Contribution Margin (CM)