Managerial Account Flashcards
Material Price Variance =
= (Standard Price - Actual Price) * Actual Quantity Purchased
Material Usage Variance =
= (Standard Quantity - Actual Quantity) * Standard Price
Wage Rate Variance =
= (Standard Wage Rate ph - Actual Wage Rate) * Actual Hours Used
Labour Efficiency Variance =
= (Standard Labour Hours for actual production - Actual Labour Hours Worked) * Standard Wage Rate Per Hour
Selling Price Variance =
= (Standard Selling Price - Actual Selling Price) * Units Sold
Sales Volume Variance =
= (Budgeted Sales units in budgeted mix - Actual sales units in budgeted mix) * Standard CM per unit
Sales Mix Variance =
= (Actual sales units in budgeted mix - Actual sales unit in actual mix) * Standard CM per unit
Break Even Point =
= (FC + Desired Profit) / CM
CM (for one product) =
= Selling Price - VC
CM (for 2 or more products) =
= Selling Price - Contribution Ratio???
Net Profit =
= Sales - FC - CV
Sales =
= Units * Selling Price
Contribution Ratio =
= ????
CPU =
= (Sales - Variable Costs) / Units
What are Irrelevant Costs?
… Past cost, ignore in many cases.
