Costings Flashcards
What is the name for all direct costs?
Prime Cost
Total of direct costs + Variable Costs=
Marginal Production Cost
Re-order Level/Value =
(Max usage x max lead time) + buffer
if u know the buffer
Buffer or minimum level of inventory
Re-order level- (average usage x average lead time)
Minimum order qty
Re-order level-buffer
Maximum order qty
Maximum inventory level-buffer
Maximum inventory level
Re-order level + re-order qty - (minimum usage x minimum lead time)
Economic Order Qty (EOQ)
Sq root of
2xCo x D
————-
Ch
Co=cost of order
D= Demand/usage in units
Ch= Cost of holding
AVCO cost per unit
total cost available/total qty available
Overhead absorption rate
Budgeted overhead/
Budgeted units produced
Profit Volume Ratio (P/V ratio) or sometimes known as Contributions Sales Ratio (C/S) ratio
contribution per unit/ Selling price per unit
OR
Total Contribution/Total Revenue
(X 100 to get percentage)
Breakeven point in sales value
Total fixed costs/
P/V ratio
Breakeven point in units
Total fixed costs/contribution per unit
Sales value giving a profit £X
Total fixed costs +required profit/
P/V ratio
Margin of Safety in units
Budgeted Sales Units-Breakeven Sales units
