Formulas Flashcards
What is the formula for tracing costs to activities in ABC step 2?
Cost assigned to Activity Pool=
Total Overhead Costs ∙ Proportion of Resources Consumed
What is the formula for calculating activity rates in ABC step 4?
Activity Rate=
(Total Cost in Activity Pool) / (Total Activity Driver Units)
What is the formula for assigning cost to cost objects in ABC step 5?
Cost Assigned to Cost Object=
Activity Rate ∙ Activity Drive for Cost Object
What is the formula for cost per time unit in TD-ABC step 2?
Cost per Time Unit=
(Total Cost of Ressources Supplied) / (Practical Capacity in Time Units)
What is the formula for assiging cost to cost objects in TD-ABC step 4?
Cost Assigned to Cost Object=
Time Required for Activity ∙ Cost per Time Unit
What is the formula for Net Present Value (NPV)?
=SUM(Cash Inflows_t/(1+r)^t) - Initial Investment
where
t = Total number of time periods
r = Discount rate (RRR)
What is the formula for Internal Rate of Return?
0 = NPV
What is the formula for the profitability index?
PI = Present Value of Future Cash Flows / Initial Investment
What is the formula for payback period method?
Payback Periods = Initial Investment / Annaul Cash Inflow
What is the formula for Present value?
PV = Future Value / (1+r)^t
What is the formula for Future value?
FV = Present Value ∙ (1+r)^t
What is the formula for allocating overhead costs to customers in CPA step 3?
Cost Allocated=
Cost per Activity ∙ Activity Meausure
What is the formula for detemrining customer profitability in CPA step 4?
Customer Profitability=
Revenue from Customer - Total Cost to Serve Customer
What is the formula for the contribution margin?
Contribution margin = Revenue - variable costs
What is the formula for the product margin?
Product margin =
((Revenue - COGS) / Revenue) ∙ 100%
