Costing Flashcards
(26 cards)
What is the formula for - Minimum Inventory Level(Buffer)?
Re-Order Level-(Average Usage x Average Lead Time)
What is the Formula for Maximum Inventory Level
Minimum Inventory Level + Re-Order Quantity
What is the Formula for Re-order Quantity
Maximum Inventory Level - Minimum Inventory Level
What is the Formula for Re-Order Level?
(Maximum Usage x Maximum Lead Time)+ Minimum Inventory Level.
What is the formula for Economic Order Quantity (EOQ)
2 x Cost of Ordering x Demand / Holding Cost. and then square root your answer. (2 Cod & Chips)
Overhead Absorption Rate
Total Budgeted Overheads / Total Planned Units/Work (could be labour hours/machine hours aswell as units)
What is the formula to work out Contribution
Selling Price - Variable Costs
What is the Formula for Break Even Point
Fixed Costs / Contribution Per Unit
What is the formula for Margin of Safety in Units
Current Output - Break Even Output
What is the formula to work out Break Even Point in Sales Revenue
Break Even Point in Units x Selling Price
What is the Formula for Margin of Safety in %
Current Output - Break Even Output / Current Output x 100
What is the Formula for Target Profit
Fixed Costs + Target Profit / Contribution Per Unit
What is the formula for Contribution Sales Ratio (CS)
Contribution /Selling Price
What is the Formula for the break even point in sales revenue using the Contribution Sales Ratio (CS)
Fixed Costs / CS Ratio
What is the Formula for Inventory Holding Days
Inventory / Cost of Sales (COS) x 365
What is the Formula for Trade Receivable Days
Trade Receivables / Revenue * 365
What is the Formula for Trade Payable Days
Trade Payable’s / Cost of Sales * 365
What is the formula for Working Capital Cycle
Inventory Holding Days + Receivables - Payable’s
What is the Lookup Value on a Vlookup Formula
The Item/Subject/Value we are looking up
What is the table Array on a Vlookup Formula
The Table/Range of Data you will be doing a lookup against
What is the Column Index Number on a Vlookup Formula
The collumn of the table you will be using the lookup for
What is the Range Lookup on a Vlookup Formula
This will either be a true or false, false will give you an exact value where as if you put true it would not
What is a logical test on an IF Formula
The Logical Test is the test your doing ie if one value is bigger than another value
What is the Value if True on an IF Statement
This is what you want the if formula to say if the logical test is true
