Formulas Flashcards

1
Q

How is cost of sales calculated?

A

(Opening inventory + purchases) - closing inventory

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

How it inventory costed?

A
  1. Production cost. (Labour + material costs) x quantity
  2. Net realisable value. Selling price - selling costs. Think auction houses.

The lower of these two will be chosen according to the prudence convention.

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

How is straight line depreciation calculated?

A

(Cost of an asset - residual value)/useful life of an asset

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

How is straight line depreciation calculated?

A

(Cost of an asset - residual value)/useful life of an asset

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

How is the reducing balance method of deprecation calculated?

A

Depreciation rate(%) x carrying amount.

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

How is weighted average costs calculated?

A

Cost of goods sold/units available for resale

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