Cost&Revenues

Question 0

Semi-Variable costs are _____ _______ in total ___ constant ___ ____

Answer 0

Neither constant in total or per unit >> not constant

Question 1

Cost accounting What’s missing: 1. 2.Valuing and controlling inventory 3. 4.Controlling costs 5. Proving information for decision making

Answer 1

1. Determining costs and profits 3. Preparing budgets and forecast

Question 3

Management accounting What’s missing: Planning, ……, Controlling, Communicating, Motivsting

Answer 3

Co-ordinating

Question 4

Management accounting What’s missing: Controlling, coordinating, communicating, motivating

Answer 4

Planning

Question 5

The 5 aims of management accounting

Answer 5

Planning Co-ordinating Controlling Communicating Motivating

Question 6

Management accounting What’s missing: Planning, controlling, coordinating, communicating

Answer 6

Motivating

Question 7

Management accounting What’s missing: Planning, controlling, coordinating, motivating

Answer 7

Communicating

Question 8

Variable costs are constant ___ ____

Answer 8

Per Unit

Question 10

Cost classification by behaviour

Answer 10

Fixed Variable Stepped Semi-Variable

Question 11

What is the main reason for cost accounting?

Answer 11

To calculate the cost of a product and therefore sales price of an item

Question 12

Fixed costs are constant in _____

Answer 12

In total

Question 13

The _______ ____ managers are accountable for the performance of _____ _______ as well as _____.

Answer 13

Investment centre capital employed profits

Question 15

5 aims of cost accounting:

Answer 15

Determining cost and profit Valuing and controlling inventory Preparing budgets and forecast Controlling costs Providing information for decision making

Question 15

Controlling: Comparing ____ to ______ expenditure helps to identify ___, __________ the causes and acting upon that _________ helps to _____ the activities of the _____

Answer 15

Plans; actual gaps Investigating investigation control

Question 16

The main responsibility centres:

Answer 16

Profit centre Investment centre Cost centre Revenue centre

Question 16

What is the Prime Cost per unit?

Answer 16

Total of all direct costs

Question 17

Attributes of management information

Answer 17

Fit for purpose Accurate Relevant Timely Cost effective

Question 18

Can there be more than one cost and revenue centres in one profit centre?

Answer 18

Yes

Question 19

Financial Accounts are an ______ record of ______ which are presented in a ______ format laid down by ___. Such accounts are normally produced ___ or _____ a year and are primarily used by _______ _____, e.g. shareholders

Answer 19

External transactions Standard law once; twice external groups

Question 19

Cost accounting What’s missing: 1.Determining cost and profit 2.Valuing and controlling inventory 3.Preparing budgets and forecast 4. 5.Providing information for decision making

Answer 19

4. Controlling costs

Question 21

Cost classification by function?

Answer 21

Production costs (cost of sales) Non-Production costs (distribution, administrative expenses etc.)

Question 26

What’s missing: 1. 2. Valuing and controlling inventory 3. Preparing budgets and forecast 4. Controlling costs 5.

Answer 26

1. Determining costs and profits 5. Providing information for decision making

Question 27

Direct costs (Prime costs) are costs that ___ be ______ related to the cost unit

Answer 27

Can directly

Question 28

Are Prime costs direct or indirect costs?

Answer 28

Direct costs

Question 29

Management accounts can be produced in ___ format that _____ __ ___ ________. They tend to be produced ____ _______ than financial accounts, usually ____ _ ____. They contain information required to run a business.

Answer 29

any useful to the organisation. More frequently, once a month

Question 30

Indirect costs (Overheads) are costs that ____ be ______ to cost unit

Answer 30

Cannot be related

Question 31

Cost classification by nature

Answer 31

Direct Indirect

Question 32

Are overheads direct or indirect costs?

Answer 32

Indirect

Question 34

High-Low Method for calculating Semi-variable costs

Answer 34

Variable cost per unit = Change in total Cost / Change in level of production Fixed costs = total costs - (v.c. x units produced)

Question 35

Cost classification by element are:

Answer 35

Materials Labour Expenses

Question 38

4 types of cost classification?

Answer 38

By element By function By nature By behaviour

Question 39

Weighted Average Cost =

Answer 39

= total cost of items in inventory / number of items in inventory

Question 40

Total cost of having inventory =

Answer 40

Purchase price + Holding costs + Re-order costs + Shortage costs + Inventory recording system costs

Question 41

Inventory - Periodic Review System: Inventory levels are reviewed at _____ ____ __ ____, when _____ to be ordered is decided

Answer 41

Fixed points in time Quantity

Question 42

Inventory: Two-bin system - a _________ order of _____ ___ (Q) is placed when inventory falls to fixed re-order level (R) >> fixed quantity is ordered at ______ intervals if time

Answer 42

Replenishment Fixed size Variable

Question 43

Re-Order level?

Answer 43

Maximum usage x maximum lead time

Question 44

Minimum inventory level

Answer 44

Re-order level - (Average usage x Average lead time)

Question 45

EOQ Economic Order Quantity

Answer 45

_____________

V (2xCoxD)/Ch

Question 46

Maximum Inventory level

Answer 46

Re-order level + Re-order quantity - (minimum usage x minimum lead time)

Question 47

Material Cost Account -Dr? Dr_________________Cr | |

Answer 47

Dr: Opening bal Purchases Return to stores

Question 48

Material Cost Account - Cr? Dr_________________Cr | |

Answer 48

Cr: Issues to production Return to suppliers Production overheads Statement of profit or loss (write-off) Closing Bsl

Question 49

Contribution per unit = ___________ - _______

Answer 49

Selling price per unit Total variable cost per unit

Question 50

Breakeven point (units) = _________ / _______

Answer 50

Fixed costs Contribution per unit

Question 51

Margin of safety = _________ - _______

Answer 51

Budgeted sales units Breakeven sales units

Question 52

Margin of safety (%) = ______ - ________ / budgeted sales units x 100

Answer 52

Budgeted sales units Breakeven sales units

Question 53

PV ratio Breakeven point = ____ / ______

Answer 53

Total fixed costs PV ratio

Question 54

PV ratio = ______ / _____

Answer 54

Contribution per Unit / Selling price per Unit Or Total contribution / Total Revenue

Question 55

Sales value giving profit £X = _____ + _____ / ______

Answer 55

Total Fixed Costs + Required Profit / PV ratio