ACCOUNTING 7TH CANADIAN EDITION
CERTIFICATION EXAM PREP 2026
COMPLETE STUDY GUIDE QUESTIONS AND
SOLUTIONS
◉ COGM equation
Answer: raw material + labor +manufacturing overhead
◉ COGS equation
Answer: COGS = BI + P - EI
◉ Income Statement equation
Answer: Revenues - Expenses = Income
◉ High Low Method
Answer: VC Per Unit = Change in Cost/ Change in Activit
◉ Segment
Answer: dividing the market into different income brackets
, ◉ Traceable Fixed Cost
Answer: A fixed cost that is incurred because of the existence of a
particular business segment and that would be eliminated if the
segment were eliminated
◉ Common Fixed Cost
Answer: A fixed cost that supports more than one business segment,
but is not traceable in whole or in part to any one of the business
segments.
◉ Segment Margin
Answer: Contribution Margin - Traceable fixed costs
◉ CVP Analysis
Answer: studies the behavior and relationship among these
elements as changes occur in units sold, selling price, VC per unit
and the FC per unit
◉ Value Chain
Answer:
◉ Breakeven Point Formula