Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGT 102 (Management Accounting > Formulas > Flashcards

Formulas Flashcards

1
Q

What is the Formula for the Breakeven Point (BEP) in units?

A

BEP (in units) = Fixed Costs/ Contibution Per Unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the formula for the Breakeven Point (BEP) in sales?

A

BEP (in sales) = Fixed Costs/ Contribution Margin Ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Formula for Contribution per unit?

A

Cont per unit = Selling Price - Variable Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Formula for Contribution Margin Ratio?

A

CM Ratio = Contribution / Selling Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Formula for Margin of Safety?

A

MOS = Current projected sales/ units - Breakeven sales/ units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Formula for overhead recovery rate?

A

OHRC = Total Overhead Cost/ Total Direct Cost X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Formula for overhead absorption rate?

A

OHAR = Overhead/ Absorption Base Units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Formula for flexed budget figures?

A

Flexed figure = Original budgeted figure x (actual activity level/ original budgeted activity level)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Formula setup for variance analysis of materials/ price?

A

AQ x AP, AQ x SP, SQ x SP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Formula setup for variance analysis of labour or variable overheads?

A

AH x AR, AH x SR, SH x SR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Formula for Standard Quantity (SQ)?

A

SQ = Actual units produced x standard quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Formula for Standard Hours (SH)?

A

SH = Actual units produced x standard hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

NPV formula?

A

NPV = - original outlay + annual income/ (1+discount rate) …
to power of 2,3 and so on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

IRR Formula?

A

Set NPV = 0:
NPV = - original outlay + total income from project/ (1 + R)
R = IRR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Formula for finding the months in a payback period?

A

= Current difference to initial outlay/ next inflow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Accounting/ Average Rate of Return Formula?

A

ARR = Average expected return/ Average capital employed/ investment

17
Q

What is the EVA Formula?

A

EVA = Conventional divisional profit +/- accounting adjustments - cost of capital charge on divisional assets

18
Q

What is the RI formula?

A

RI = Controllable profit - the cost of capital charge

19
Q

Formula for ROI:

A

Same as ARR:
ROI (ARR) = Average annual profits/ average investment

MGT 102 (Management Accounting (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions