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. DL + DM






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






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






4. Cost incurred






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






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






7. COGM + Beg Finished Goods






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






9. A little fixed & a little variable






10. Rev - COGS






11. Goods Available for Sale - End Finished Goods






12. SP-VC (per unit)






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






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






15. Sales Revenue - BE Revenue






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






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






18. Product and Period Costs






19. DL + FOH






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






21. Product Cost / Units Produced






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






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






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






25. Op Income - Income Taxes






26. Advertising - Depreciation of Office Equipment - Shipping Costs






27. VC per unit x Units Sold






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






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






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






31. DM - DL - FO






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






33. Selling and Administrative






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






35. Total Rev - Total VC






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






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






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






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






40. Predicted cost






41. DM + DL + FOH






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. DL + FOH






44. CM per unit / SP






45. The product being made






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






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






48. FC / CM per unit






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






50. Property tax - property insurance - and property rent