CVP Flashcards
1
Q
What is the cost function?
A
y= a + bx
2
Q
Equation 1 and 2 of cost function?
A
Eq. 1 Ey=na + bEx
Eq. 2 Exy=aex +bEx2
3
Q
SALES
-VC =
A
CM
4
Q
CM-FC=
A
PROFIT
5
Q
how to compute CM/u?
A
UNIT SP- UNIT VC
6
Q
How to compute CMR?
A
CM/ SALES
OR
UNIT CM/ UNIT SP
7
Q
Formula for:
BEP (unit)
A
FC / CMU
8
Q
Formula for:
BEP Peso
A
FC / CMR
9
Q
Formula for:
BEP RATIO
A
BEP/ SALES
10
Q
Formula for:
Sales Unit with targeted Profit
A
FC + Targeted Profit/ CMU
11
Q
Formula for:
Sales peso with target profit
A
FC + Target Profit/ CMR
12
Q
Is it necessary that profit is always before tax? if yes, how to compute if given is after tax?
A
AFTER TAX / (100%- TAX RATE)
13
Q
Formula for:
MOS
A
Sales-BEP
or
Profit/CMR
14
Q
Formula for:
MSR
A
MS/Sales
or
Profit Ratio/CMR
15
Q
Formula for:
Sales
A
MS+ BEP
