Equation

Question 1

Dollar change formula

Answer 1

current periods number- previous periods number

Question 2

Percentage change formula

Answer 2

current periods number- period periods number/previous periods number *100

Question 3

Trend analysis

Answer 3

current year/base year*100

Question 4

Indirect method

Answer 4

Asset increase - deduct from net profit

Liability increase - add to net profit

Question 5

Variance Budget

Answer 5

Actual - budget

Question 6

Breakeven

Answer 6

Fixed/ contribution margin

Question 7

Contribution margin ratio 1

Answer 7

Contribution margin per unit/ selling price per unit *100

Question 8

Contribution margin ratio 2

Answer 8

Total contribution margin / total sales * 100

Question 9

Contribution margin

Answer 9

Revenue - variable costs

Question 10

Margin of safety

Answer 10

Actual production - breakeven

Question 11

Desired profit

Answer 11

Fixed cost + desired profit / contribution margin per unit

Question 12

Operating leverage

Answer 12

Fixed costs / variable costs

Question 13

Special orders

Answer 13

contribution margin * products

Question 14

NPV

Answer 14

NCF * Present value - initial purchase + salvage value NCF

Question 15

PP

Answer 15

Initial purchase / CF

Question 16

ARR

Answer 16

Average profit / Average investment

Question 17

Average profit

Answer 17

(profit- total depreciation)/ years

Question 18

Average investment

Answer 18

(initial cost + residual value)/2