D196

Question 1

Absolute Cell Reference

Answer 1

A cell reference that remains constant when a formula is pasted into a new cell.

Question 2

Account

Answer 2

An accounting record in which the results of transactions accumulated; shows increases, decreases, and a balance.

Question 3

Accounting

Answer 3

A system for providing quantitative, financial information about economic entities that is useful for making sound economic decisions. Accounting provides the means of recording and communicating business activities and the results of those activities.

Question 4

Accounting Cycle

Answer 4

The procedure for analyzing, recording, summarizing, and reporting the transactions of a business.

Question 5

Accounting Equation

Answer 5

An algebraic equation that expresses the relationship between assets (resources), liabilities (obligations), and owner’s equity (net assets, or the residual interest in a business after all liabilities have been met): Assets = Liabilities + Owners’ Equity.

Question 6

Accounting System

Answer 6

Equity. The procedures and processes used by a business to analyze transactions, handle routine bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the business.

Question 7

Activity-based Costing (ABC)

Answer 7

A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs.

Question 8

Actual Manufacturing Overhead

Answer 8

Manufacturing costs other than direct materials and direct labor.

Question 9

American Institute of Certified Public Accountants arli (AICPA)

Answer 9

A professional organization for CPAS in which membership is voluntary.

Question 10

Annual Report

Answer 10

A document that summarizes the results of operations and financial status of a company for the past year and outlines future plans.

Question 11

Applied Manufacturing Overhead

Answer 11

The amount of the manufacturing overhead that is assigned to the goods produced. This is usually done by using a predetermined annual overhead rate.

Question 12

Comparative Financial Statements

Answer 12

Financial statements that include information for both the current year and preceding year(s) that are prepared for users to identify any significant changes in particular items.

Question 13

Contribution Margin

Answer 13

The difference between total sales and variable costs; the portion of sales revenue available to cover fixed costs and provide a profit.

Question 14

Contribution Margin (formula)

Answer 14

Sales Revenue - Variable cost.

Question 15

Contribution Margin per Unit (formula)

Answer 15

Sales per unit - Variable cost per unit.

Question 16

Contribution Margin Ratio (formula)

Answer 16

Contribution Margin per unit/sales per unit.

Question 17

Net Income Formula

Answer 17

Revenues - Expenses.

Question 18

Variable Cost Ratio (formula)

Answer 18

Variable cost per unit/sales per unit.

Question 19

Break Even in Units

Answer 19

fixed costs / contribution margin per unit.

Question 20

break even in dollars

Answer 20

Fixed cost/contribution margin ratio.

Question 21

Target Net Income (formula)

Answer 21

(Fixed cost + target income) / contribution margin per unit.

Question 22

What is the C-V-P equation (basic formula)

Answer 22

Sales Revenue - Variable Cost - Fixed Cost = Profit.

Question 23

Controllable Costs

Answer 23

Costs over which a manager has direct authority and can change.

Question 24

Controlling

Answer 24

Tracking the actual performance of a company.

Question 25

Cost Accountant

Answer 25

An accountant who is specially trained to prepare and analyze accounting information for internal decision-making.

Question 26

Cost Behavior

Answer 26

The way a cost is affected by changes in activity levels.

Question 27

Cost Center

Answer 27

An organizational unit in which a manager has control over and is held accountable for cost performance.

Question 28

Cost drivers are

Answer 28

A numerical measure used to reflect the amount of a specific cost that is associated with a particular activity.

Question 29

Cost Objects

Answer 29

An output of a business, such as a product, service, or division.

Question 30

cost pool

Answer 30

Total cost being generated by a specific overhead cost activity.

Question 31

Cost Variance

Answer 31

A difference between the actual cost and the budgeted cost.

Question 32

Cost of Goods Manufactured Statement

Answer 32

A schedule supporting the income statement that summarizes the total cost of goods manufactured and transferred out of the work-inprocess inventory account during a period. These costs include direct materials, direct labor, and applied manufacturing overhead.

Question 33

Cost of Goods Sold Statement

Answer 33

A statement that sums the cost of goods sold for an accounting period based on the cost of goods sold formula.

Question 34

Cost-volume-profit (C-V-P) Analysis

Answer 34

Techniques for determining how changes in revenues, costs, and level of activity affect the profitability of an organization.