BUS 211 CBT Practice

1. The ratio of contribution to sales value is commonly referred to as the __________ ratio.

2. The point where total revenue equals total cost, resulting in neither profit nor loss, is called the __________ point.

3. A __________ cost remains constant in total amount regardless of the volume of production within a certain range.

4. To calculate the number of units required to achieve a target profit, the formula is (Fixed Costs + Target Profit) divided by __________.

5. __________ costs are costs that are influenced by the actions of a specific manager or head of a cost center.

6. Materials that are integral to the finished product and can be easily traced to it are called __________ materials.

7. The systematic recording of costs as they are actually incurred is referred to as __________ costing.

8. In break-even analysis, it is assumed that __________ per unit remains constant at all levels of output.

9. In marginal costing, the excess of sales revenue over variable costs is called the __________.

10. A cost center that consists of a group of persons, such as a sales department or a works manager's office, is classified as a(n) __________ cost center.

11. A major assumption of break-even analysis is that the __________ per unit remains constant regardless of the volume of output.

12. Costs that are incurred for the benefit of more than one cost center and cannot be traced directly are called __________.

13. The sum of all direct costs, including direct materials, direct labor, and direct expenses, is referred to as the __________ cost.

14. The __________ function of cost accounting involves comparing actual performance against set targets to identify variances.

15. The process of comparing actual costs with pre-determined standards to identify and correct deviations is known as cost __________.

16. Selling price per unit minus variable cost per unit is defined as the unit __________.

17. To calculate the break-even point in units, you divide the total fixed costs by the __________.

18. Costs that vary in direct proportion to changes in the level of activity or output are known as __________ costs.

19. The systematic process of identifying, measuring, and reporting costs of products or services is known as __________.

20. A cost that contains both fixed and variable components, such as a telephone bill with a base rent and usage charges, is a __________ cost.

21. The process of making decisions about the future based on cost data is the __________ function of management.

22. Cost accounting is defined as a systematic process of collecting, analyzing, and evaluating various courses of action to advise management on the most __________ course of action.

23. Materials that can be easily identified with and traced to a specific unit of production are called __________ materials.

24. The sum of direct materials, direct labor, and direct expenses is known as the __________ cost.

25. The process of providing detailed cost information that management needs to plan for the future and control current operations is the primary goal of __________.

26. The body of systematic knowledge relating to subjects such as law, office practice, and data processing classifies cost accounting as a(n) __________.

27. A cost that remains constant in total regardless of changes in the level of activity is known as a __________ cost.

28. The ratio that shows the relationship between contribution and sales value is the __________ ratio.

29. A __________ chart is a graphical representation of the relationship between costs, volume, and profits.

30. A __________ cost is a type of cost that remains fixed up to a certain level of activity and then increases to a new fixed level.

31. If the selling price is ₦25 and the variable cost is ₦15, the contribution per unit is __________.

32. Costs that are not identified with a specific product but are instead charged against the profit of the period in which they occur are called __________ costs.

33. When cost accounting is used to determine the exact cost of a product or service, it is performing the function of cost __________.

34. The difference between the actual sales volume and the break-even sales volume is known as the __________.

35. The amount by which the actual sales exceed the break-even sales is referred to as the __________ of safety.

36. The point at which a business makes neither a profit nor a loss is known as the __________ point.

37. One major limitation of break-even analysis is that it assumes __________ and sales are always the same.

38. The primary objective of __________ accounting is to provide information to internal management for planning and control, rather than for external stakeholders.

39. Under __________, only variable costs are charged to products, while fixed costs are treated as period costs.

40. Cost accounting is considered a(n) __________ because it requires the ability and skill of an accountant to apply principles to specific management problems.