management formulas Flashcards
closing inventory
opening inventory + purchases - issues of inventory
semi varibale closts
y = a + b x
y semi variable costs
a fixed costs
b variable cost
x number of units
Overhead absorbtion rate
absorption basis
Predetermined Overhead Rate
estimated units in allocation basis
how to work out overhead applied (incorporating POHR)
POHR * actual activity
contribution
selliung price - variable cists
breakeven point
total fixed costs/contribution per unit
margin of safety units
budgeted sales units - breakeven sales unit
margin of safety %
(budgeted sales unit - breakeven sales unit)/ budgeted sales unit
profit (using MoS)
margin of safety% * contribution
margin
profit / (cost of sales +profit) OR profit/sales OR (price-cost)/price
markup
profit/(sales-profit)
OR
profit/cost of sales
gross profit
sales - cost
current ratio
current asset/current liabiltieis
quick/liquidity/acid ratio
(Current asst- Inventories)/ current liabilties
inventory turnover period
inventory/cosy of sales
*365
Rate of Inventory turnover period
cost of sales/average inventory
Recievables collection period (days)
average recievables/annual sales revenue
*365
payables collection period
average payables/annual purchases
*365
materials price variance
Actual quantity ( actual price - stamndard price )
Materials quantity variance
stnadard price( actual; quantity - standatd quantity)
labour rate variance
actual hours ( actual rate - stamdard rate)
labour efficency variance
standard rate (actual hours- standard hours)
variable overhead spending variance
actual hours (actual rate- standard rate)
variable overhead efficency variance
standard rate (actual hours - standard hours)
return on investment
operating profit / average operating assets
Residual icnome
controllable divisonal profit x
imputed interest cost of capital (x)
