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. The product being made






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






3. Selling and Administrative






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






5. CM per unit / SP






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






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






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






9. FC / CM per unit






10. Goods Available for Sale - End Finished Goods






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






12. ∑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)






13. 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






14. DL + DM






15. # 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






16. Advertising - Depreciation of Office Equipment - Shipping Costs






17. A little fixed & a little variable






18. Op Income - Income Taxes






19. Product and Period Costs






20. VC per unit x Units Sold






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






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






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






24. Predicted cost






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






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






27. Product Cost / Units Produced






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






29. Sales Revenue - BE Revenue






30. Cost incurred






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






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






33. DM - DL - FOH






34. COGM + Beg Finished Goods






35. SP-VC (per unit)






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






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






38. Rev - COGS






39. DL + FOH






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






41. Property tax - property insurance - and property rent






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






43. Total Rev - Total VC






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






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






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






47. DL + FOH






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






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






50. SP x Units Sold