MAPS - Ratios Flashcards
How to calculate reorder level?
(average usage x average lead time) + buffer inventory
How to work out maximum inventory level?
Buffer inventory + maximum reorder quantity
How to work out maximum reorder quantity?
Maximum inventory level - buffer inventory
How to work out minimum reorder quantity?
Average usage x average lead time
How to work out Economic Order Quantity?
((2 x annual usage x ordering cost) / inventory holding cost ) All square rooted
How to work out time rate?
Hours worked x rate per hour
How to workout piecework rate?
Number of items produced x rate per unit
How to workout overhead absorption rate?
Total budgeted cost centre overheads / total planned work in cost centre
How to work out equivalent units?
Number of units in progress x percentage of completeness
How to workout contribution?
Selling price - variable cost
How do you workout break even?
Fixed costs / Contribution per unit
How do you workout margin of safety?
((Current output - break even out) / current output ) All x 100
How do you workout target profit (units)?
(Fixed costs + target profit) / contribution per unit
How do you workout profit-volume ratio?
Contribution / Selling price
How to workout inventory holding period in days?
(Inventories / cost of sales) x 365
How to workout trade receivables collection period in days?
(Trade receivables / revenue ) x 365
How to workout trade payables payment period in days?
(Trade payables / cost of sales) x 365
How to workout working capital cycle in days?
Inventory days + receivable days - payable days
How do you workout BOAR?
Budgeted overheads / budgeted machine/labour hours
How do you workout overhead absorbed?
Actual activity x BOAR
