Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

EKF113 Management Accounting > Presentation: Equations > Flashcards

Presentation: Equations Flashcards

1
Q

ROI

A

(Revenue - costs) / avg. assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Prime cost

A

Direct material + direct labor cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Total manufacturing cost

A

Prime cost + manufacturing overhead

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Total cost

A

Total manufacturing cost + non manufacturing overhead

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Overhead rate

A

Total overhead / allocation base

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Over or under recovery

A

OH rate * ( actual allocation base - budgeted allocation base)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Adjustment for non-cash items (cashflow)

A

Provision(x) - provision(x-1) + depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Changes in inventory (cashflow)

A

Inventory value(x-1) - inventory value(x)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Changes in operating receivables (cashflow)

A

Account receivable(x-1) account receivable(x)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Changes in operating liabilities (cashflow)

A

Short term liabilities(x) - short term liabilities (x-1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Investments (cashflow)

A

Non current assets (x-1) - non current assets (x) - depreciation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Changes in loans (cashflow)

A

Long term liabilities (x) - long term liabilities (x-1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Dividends (cashflow)

A

Retained earnings(x) - retained earnings(x-1) - net income(x-1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Cash (balance sheet)

A

Cash(x-1) + total cashflow from cashflow statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Contribution margin

A

Sales revenue - variable cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Total cost

A

Fixed cost + variable cost

17
Q

Break even

A

Revenue = total cost
Contribution = fixed cost
Units = fixed / contribution margin

18
Q

Margin of safety

A

Expected sales volume - volume at break even

19
Q

Profit (cvp)

A

Sales revenue * contribution margin ratio) - fixed cost

20
Q

Contribution margin ratio

A

Contribution margin / sales revenue

21
Q

Present value

A

Future value (n) / (1+ interest rate)^n

22
Q

Future value

A

Present value * (1+ interest rate)^n

23
Q

Net present value

A

Present value for all years of income - initial investment

24
Q

Over or under spending with flexible budget

A

Actual units * budgeted cost per unit - actual cost

25
Q

Other words for ROA

A

Return on investment ROI and accounting rate of return ARR

26
Q

Controllable profit

A

Total sales revenue - controllable cost

27
Q

Division profit contribution

A

Controllable profit - non controllable or avoidable costs

28
Q

Division net profit before tax

A

Division profit contribution - allocated corporate expenses

29
Q

Residual income

A

Controllable income - (investment cost * budgeted roi)

30
Q

Cost of capital charge

A

Required investment return per year / investment cost

31
Q

ROI

A

Proposed return per year / investment

32
Q

Leverage equation

A

ROE = ROA + (ROA - interest) * L/E

33
Q

DuPont analysis

A

ROA = (Operating income + financial revenue / net sales) * (net sales / avg. assets)

EKF113 Management Accounting (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions