5 Written questions
5 Matching questions
- Period costs
- Cost structure
- equivalent units
- Margin of safety percentage
- sales activity variance
- a proportion of an organization's fixed and variable costs to its total costs
- b costs recognized for financial reporting when incurred.
- c the excess of projected or actual sales over the break even volume expressed as a percentage of actual sales volume
- d difference between operating profit in the master budget and operating profit in the flexible budget that arises because the actual number of units sold is different from the budgeted number; also known as sales volume variance
- e number of complete physical units to which units in inventories are equal in terms of work done to date. A number of physical units multiplied by the estimated percentage that an "average" unit in inventory is "complete" with respect to the individual resource.
5 Multiple choice questions
- sales price minus variable costs per unit
- x term, or predictor, on the right hand side of a regression equation
- t is the value of the estimated coefficient, b, divided by its standard error
- complex job that often takes months or years to complete and requires the work of many different departments, divisions or subcontractors
- collection of costs to be assigned in the cost objects
5 True/False questions
Peak load pricing → practice of setting prices highest when the quantity demanded for the product approaches capacity
How to make cost information more useful for managers → provide information to help managers make better decisions.
Engineering estimate → cost estimate based on measurement and pricing of the work involved in a task
Variable costs → costs that change in direct proportion with a change in volume within the relevant range of activity
Cost object → complex job that often takes months or years to complete and requires the work of many different departments, divisions or subcontractors