Ratios Flashcards
Current year actual manufacturing overhead does not subtract…2
1 freight in
2 normal spoilage
What goes in the numerator of a manufacturing cycle efficiency?
Process time
A manufacturing company that wanted to be able to place material orders more efficiently most likely would utilize…
Electronic data interchange
Image processing systems have the potential to education the volume of paper circulated throughout an organization. To reduce the likelihood of. Users relying on the wrong images, management should ensure that appropriate controls exist to maintain…
Integrity of index data
A slower rate of growth in income relative to other countries, which causes imports to lag behind exports would cause…
Nation’s currency to appreciate
To calculate cost of sales…
Ending inventory should be subtracted
Weighted average EUs equation
Weighted average EUs =
units completed + work done on ending WIP
Cost per direct labor EU equation
Cost per direct labor EU = total labor cost/equivalent units
Ending direct labor WIP equation
Ending direct labor WIP =
weighted average EUs x cost per direct labor EU
Conversion cost transferred to second production department?
Conversion cost/unit
x (units completed and transferred + normal spoilage)
FIFO equivalent finished units calculation
Equivalent finished units =
units completed + ending inventory - beginning inventory
Conversion cost per unit FIFO
Conversion cost per unit =
conversion costs on units started/EFUs
Net realizable value of the byproduct is subtracted from…
Joint product costs
Is depreciation factored into net of tax contribution margin?
No, only taxes
Collection ratio
Assume $50,000 in sales every day and 60% take discount in 10 days
Solve for accounts receivable
Collection ratio = accounts receivable/avg. daily sales
10 =. Accounts receivable/($50,000 x 60%)
