Final Exam Review Flashcards
(27 cards)
Activity Rate =
Est. Overhead Cost / Est. Activity
Gross Margin =
Sales - COGS
COGS =
Beg FG + COGM - End FG
High Low Method =
High Cost - Low Cost / High DLH - Low PLH
High Low Method for Constant if Estimated Variable Cost is $4 =
High Cost - High DLH X $4 = $5,200
CM Ratio =
CM / Sales
Break-even in Dollars =
Fixed Expense / CM Ratio
Margin of Safety in Dollars =
Sales - Breakeven Sales
Operating Leverage =
CM / NOi
Net Operating Income =
Sales - COGS = Gross Margin - SellingAdmin = Net Operating Income
Under Absorption Costing, what’s included when calculating cost per unit?
DM DL V MFG F MFG = Cost Per/Unit
Under Variable Costing, what’s included when calculating cost per unit?
DM DL V MFG V SellAdmin = Cost Per/Unit
Budgeted Production for March =
Sales March
Add: Planned Ending for April
Less: Beg Inventory for April
= Production
Using this,
(AQxAP) (AQxSP) (SQxSP)
Rate/Price is found from?
1 - 2
Using this,
(AQxAP) (AQxSP) (SQxSP)
Spending Variance is found from?
1 - 3
Using this,
(AQxAP) (AQxSP) (SQxSP)
Quantity/Efficiency is found from?
2 - 3
Adding up Direct Materials =
RM Beginning Inv Add: RM Purchased Less: RM Ending Inv = RM Materials Less: Indirect Materials = Direct Materials
Margin =
NOI / Sales
Turnover =
Sales / AOA
Residual Income =
NOI - (AOA x Minimum Required Return)
Minimum Required Return Rate of Return =
Minimum Required Return/AOA
Payback Period =
Investment Required / Annual Net Cash Inflow
NPV =
Difference between cash inflows and cash outflows
Internal ROR =
Investment Required / Annual Net Cash Inflow
