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BEC FORMULA > Dave Formulas > Flashcards

Dave Formulas Flashcards

1
Q

GDP-Expenditure Approach

A

G.I.C.E. Government Spending+Private Investment+Personal Consumption+Net Exports

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2
Q

GDP-Income Approach

A

I.P.I.R.A.T.E.D. Income of proprietors+Profits of corporations+Interest (net)+Rental Income+Adjustment for foreign income+Taxes Indirect business taxes+Employee Compensation+Depreciation

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3
Q

Net Domestic Product

A

GDP less depreciation

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4
Q

Gross National Product (GNP)

A

GDP plus US overseas production less Foreign production in US

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5
Q

Net National Product

A

GNP less economic depreciation

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6
Q

National Income

A

NNP less indirect business taxes

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7
Q

Personal Income

A

Income by households and noncorporate businesses

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8
Q

Disposable Income

A

personal income less personal taxes

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9
Q

Frictional Unemployment

A

unemployment from workers changing jobs

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10
Q

Structural Unemployment

A

unemployment from changing skills and no jobs where workers live

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11
Q

Cyclical Unemployment

A

unemployment from declines in real GDP during periods of contraction or recession

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12
Q

Natural Rate of Unemployment

A

Frictional + Structural+ Seasonal Unemployment

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13
Q

Inflation Rate

A

(((CPI (this period)-CPI (last period))/CPI (last period)))*100

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14
Q

APR (annual percentage return)

A

Effective Interest Rate * # of periods in year

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15
Q

Asset turnover

A

Sales / Total Assets

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16
Q

Breakeven Point in terms of units

A

fixed costs / Contribution Margin

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17
Q

Breakeven Point in terms of dollars

A

fixed costs / contribution margin ratio

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18
Q

Cash conversion cycle

A

inventory conversion period + receivables collection period - payables deferrable period

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19
Q

Inventory conversion period

A

Average Inventory / Cost of sales per day

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20
Q

Contribution Margin

A

revenue or sales – variable costs

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21
Q

Cost of Goods Sold

A

Beg. Inventory + Inv. Purchases – End. Inventory

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22
Q

Dividend Payout Ratio

A

cash dividend per share / Earnings per share

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23
Q

Economic Value Added

A

net operating profit after taxes (NOPAT) – cost of financing

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24
Q

Effective Interest Rate

A

(principle * rate * time) / principle

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25
Q

Gross Margin

A

revenue – cost of goods sold (or gross profit)

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26
Q

Inventory Turnover

A

cost of goods sold / average inventory

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27
Q

Marginal propensity to consume

A

change in spending / change in disposable income

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28
Q

Marginal propensity to save

A

change in savings / change in income

29
Q

Number of Days Sales in Inventory

A

of days in year (usually 365 or 360) / Inventory Turnover

30
Q

Quick Ratio

A

Quick assets (cash, marketable securities, and A/R) / current liabilities

31
Q

Residual Income (RI)

A

operating profit – interest on investment (or required rate of return)

32
Q

Times interest Earned Ratio

A

earnings before interest and taxes / interest expense

33
Q

Total costs

A

fixed costs + variable costs or y mx + b, where m slope, x variable value, and b variable value, and b y intercept

34
Q

Labor Efficiency

A

SR * (SH – AH). Standard Rate *(standard hour – actual hour)

35
Q

Labor Rate

A

AH * (SR – AR). Standard price per unit * (standard quantity used – actual quantity used)

36
Q

Material Price

A

AQ * (SP – AP). Actual Quantity Purchased/Consumed *(standard price per unit – actual price per unit)

37
Q

Material Efficiency

A

SP * (SQ – AQ). Standard price per unit * (standard quantity used – actual quantity used)

38
Q

Fixed overhead spending

A

(budgeted-standard fixed overhead to incur – actual fixed overhead incurred)

39
Q

Fixed overhead volume

A

(budgeted-standard fixed overhead to incur – ((actual production * standard labor hours)*(budgeted-standard fixed overhead to incur/budgeted labor hours))

40
Q

Weighted Average Cost of Capital

A

[(cost of capital A / Total Amount)(rate of cost)(1-Tax Rate)] + [(cost of capital B / Total cost amount)(rate of cost)]

41
Q

Work in process

A

Direct Material used + Direct Labor + Manufacturing Overhead

42
Q

Book value per share

A

common stock equity / common stock shares outstanding

43
Q

Common stockholders’ equity

A

stockholders’ equity – preferred stock liquidation value

44
Q

Contribution Margin Ratio

A

(sales – variable costs) / sales

45
Q

Cost of financing

A

(Total assets – current liabilities) * Weighted average cost of capital

46
Q

Cross-Elasticity of Demand

A

% change in demand for certain product A / % change in price of certain product B.

47
Q

Debt to equity

A

Total debt / total equity

48
Q

Fixed asset turnover

A

sales / average net fixed assets

49
Q

Income Elasticity

A

% change in quantity demanded / % change in income

50
Q

Total asset turnover

A

sales / average total assets

51
Q

Safety Stock

A

(Max. Daily demand * Max. Lead time) – reorder point

52
Q

Receivable Turnover

A

Net credit sales / average accounts receivable

53
Q

Return on sales (ROS)

A

net income / Sales

54
Q

Return on Investment (ROI)

A

Net Income / Total Assets

55
Q

Return on Investment (ROI)

A

Net Income / Total Assets

56
Q

Return on Equity (ROE)

A

net income / Average common stockholders’ equity

57
Q

Return on Assets (ROA)

A

net income / average total assets

58
Q

Reorder Point

A

delivery time of stock + safety stock or could be stated as

59
Q

Receivables Collection Period

A

Average Accounts Receivable / Credit Sales per day

60
Q

Profitability Index

A

project net present value / cost of project

61
Q

Price/Earning (PE) Ratio

A

common stock price per share / Earning per share

62
Q

Preferred Stock Valuation

A

dividend per share / required rate of return

63
Q

Operating Profit Margin

A

Operating profit / net sales

64
Q

Operating leverage

A

% change in operating income / % change in unit volume

65
Q

Market Capitalization

A

Common stock price per share * common stock shares outstanding

66
Q

Marginal utility

A

change in total utility / change in quantity

67
Q

Internal Rate of Return

A

Initial Investment + Cash Flow in Period n/ (1 + Discount Rate) to the nth power (# of periods).

68
Q

Variable overhead efficiency variance (VOHEV)

A

(Actual quantity × Standard price) - (Standard quantity × Standard price)

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