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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. SP x Units Sold






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






3. Rev - COGS






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






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






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






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






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






9. Selling and Administrative






10. DL + FOH






11. VC per unit x Units Sold






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






13. Advertising - Depreciation of Office Equipment - Shipping Costs






14. DM - DL - FOH






15. The product being made






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






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






18. # 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






19. DM - DL - FO






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






21. ∑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)






22. Sales Revenue - BE Revenue






23. SP-VC (per unit)






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






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






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






27. Total Rev - Total VC






28. COGM + Beg Finished Goods






29. Product and Period Costs






30. Predicted cost






31. Cost incurred






32. FC / CM per unit






33. Op Income - Income Taxes






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






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






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






37. A little fixed & a little variable






38. Goods Available for Sale - End Finished Goods






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






40. DL + DM






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






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






43. Product Cost / Units Produced






44. Property tax - property insurance - and property rent






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






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






47. DM + DL + FOH






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






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. DL + FOH