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. # 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






2. DL + DM






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






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






5. FC / CM per unit






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






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






8. The product being made






9. DM + DL + FOH






10. DM - DL - FOH






11. Selling and Administrative






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






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






14. Total Rev - Total VC






15. Product Cost / Units Produced






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






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






18. Product and Period Costs






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






20. Advertising - Depreciation of Office Equipment - Shipping Costs






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






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






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






24. Predicted cost






25. 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






26. DL + FOH






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






28. ∑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)






29. SP x Units Sold






30. COGM + Beg Finished Goods






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






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






33. Property tax - property insurance - and property rent






34. DL + FOH






35. DM - DL - FO






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






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






38. Cost incurred






39. VC per unit x Units Sold






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






41. Rev - COGS






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






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






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






45. CM per unit / SP






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






47. A little fixed & a little variable






48. Goods Available for Sale - End Finished Goods






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






50. Sales Revenue - BE Revenue