Accounting Final Equations

Question 1

Beg. Finished Goods Inventory + COGM - End. Finished Goods Inventory

Answer 1

COGS

Question 2

Beg. WIP + Total Manufacturing Costs - End WIP

Answer 2

COGM

Question 3

Beg. Raw Materials Inventory + Purchases of Raw Materials - Raw Materials - Raw Materials used

Answer 3

End. Raw Materials Inventory

Question 4

Beg. WIP Inventory + Direct Materials + Direct Labor incurred + MOH applied

Answer 4

Ending WIP

Question 5

Sales - Variable Costs

Answer 5

Contribution Margin

Question 6

Contribution Margin - Fixed Costs
or
Sales - Variable Costs - Fixed Costs

Answer 6

Net Income

Question 7

Fixed Costs/ Unit Contribution Margin

Answer 7

Breakeven Point

Question 8

Investment X Minimum Rate of Return

Answer 8

Desired Profit

Question 9

Cost + Markup
or
Cost + (Cost X Markup Percentage)

Answer 9

Price

Question 10

Investment in new production X Minimum rate of return

Answer 10

Desired Profit

Question 11

Controllable Margin/ Average Operating Assets

Answer 11

ROI

Question 12

Controllable Margin - (Min. Rate of Return X Avg. Operating Assets)

Answer 12

Residual Income

Question 13

Initial Investment/ Annual Net Cash Flow

Answer 13

Payback Period

Question 14

Present Value of Net Cash Flows/ Initial Investment

Answer 14

Profitability Index

Question 15

Expected Annual Net Income/Avg. Investment

Answer 15

Annual Rate of Return

Question 16

(Original Investment + Salvage Value)/2

Answer 16

Average Investment