Formula To Remember

Question 1

SP

Answer 1

SV (SP - VC) - FC = ROI x Investment

Question 2

COGS

Answer 2

Beginning inventory
+ purchases for period
- ending inventory

Question 3

Favourable and unfavourable

Answer 3

+ U
- F

Question 4

FOH actual

Answer 4

Flexible budgets Flexible budgets
BQ AP

Question 5

Overhead rate =

Answer 5

Total OH / total revenue

Question 6

Return on sales (before tax) =

Answer 6

Total profit before tax / total sales revenue

Question 7

Absorption

Answer 7

Sales
-cogs
= gp
-vc
-fc
=operating income

Question 8

Cogs in absorption

Answer 8

Units sold x absorption costs per unit

Question 9

Raw materials purchased

Answer 9

(Ending inventory - begining inventory) + COGS

Question 10

Flexible budget =

Answer 10

Standard costs x actual # of units produced

Question 11

Operating profits =

Answer 11

Revenue - operating expenses - COGS - day to day costs

Question 12

ABC operating profit

Answer 12

Total revenue - ( DC + ABC + other direct costs)

Question 13

Standard costs

Answer 13

DL + material costs + MOH