Margin Costing Flashcards
Income Statement under Absorption Costing
Income Statement under Margin Costing
Margin vs Absorption-Example
PV Ratio
BE Point
BE Calculation-sales commission
Calculation of selling price
Calculation of capacity sales
Calculation of sales
Calculation of sales, FC & PV ratio
Calculation of profit and sales
Other variables known
Calculation of FC & Sales
Calculation of BE
when profit point and loss point are known
Calculation of new BE when product mix is changed
Calculation of BE-when RoR given
MoS
What are Two formulas
MoS=Projected (or total) Sales - B/E sales
Profit/PV ratio
Formulas & Variations
- Basic Total Equation (sales, VC, FC, Profit)
- SalesXratio?=? & How
- Fixed Cost=??—-if BES level known
- BE-basic equation
- PV ratio=?? if FC & BES level known
- Contribution=?? if sales and PV ratio are known
- PV ratio basic eq??
- Contribution=??…………When BES, MOS & PV ratio are known
- What is profit P=?? if MOS and PV ratio are known
- What PV ratio’s alternative formula (when change in P level and S level are known)
- What PV ratio’s alternative formula (when change in cont. level and S level are known)
- MOS - two formulas??
Application of marginal cost Equation
Calculation of Margin of Safety
CAlculation of selling Price
CAlculation of BE
Calculation of BES & MOS
Calculation of BE, sales & Profit