Formulas

Question 1

Price Variance

Answer 1

(AQ * AP) - (AQ * SP)

Question 2

Quantity Variance

Answer 2

(AQ * SP) - (SQ * SP)

Question 3

Cost Variance

Answer 3

(AQ * AP) - (SQ * SP)

Question 4

Volume Variance

Answer 4

Budgeted OH - Standard OH Applied

Question 5

Controllable Variance

Answer 5

Actual OH - (Budgeted OH at Actual Units)

Question 6

OH Variance

Answer 6

Actual - Standard

Question 7

Sales Volume Variance

Answer 7

(AQ * SP) - (SQ * SP)
OR
Flexible Budget Sales - Budgeted Sales

Question 8

Sales Price Variance

Answer 8

(AQ * AP) - (AQ * SP)
OR
Actual Sales - Flexible Budget Sales

Question 9

Total Sales Variance

Answer 9

Sales Price V +/- Sales Volume V

Question 10

COGm

Answer 10

DM + DL + OH + BWIP - EWIP

Question 11

COGS

Answer 11

DM + DL + OH + BWIP - EWIP + BFinished - EFinished
OR
COGm + BFinished - EFinished

Question 12

Conversion Costs

Answer 12

DL + OH

Question 13

Prime Costs

Answer 13

DM + DL

Question 14

Degree of Operating Leverage

Answer 14

CM / Income
OR
(Sales - Var) / Income

Question 15

Break Even per Unit

Answer 15

Fixed Costs / CM per Unit
OR
Fixed Costs / (Sales - Var)

Question 16

CMpU

Answer 16

Sales - Variable

Question 17

CM Ratio

Answer 17

(Sales - Var) / Sales

Question 18

COGS 2

Answer 18

Beginning + Purchases - Ending

Question 19

GENERIC ALGEBRA, IMPORTANT

Answer 19

Beginning - Sales + Purchases = Ending

Question 20

Time change per DLH

Answer 20

(DLH + Non-Materials Related OH) * 1.Target Profit Margin %

Question 21

Cash Conversion Cycle

Answer 21

Days AR + Days Inv - Days AP

Question 22

Lowest acceptable transfer prices

Answer 22

Use VARIABLE if there IS excess
Use Market if there is NO excess

Question 23

Variable OH

Answer 23

OH / Activity BASE

Question 24

Variance analysis flow is NOT to

Answer 24

It is NOT to ensure all variances are favorable

Question 25

Cost Variance means

Answer 25

difference between actual cost and standard cost