Financial Terms Flashcards
1
Q
How to calculate quick ratio?
A
assets of next 90 days / liabilities of next 90 days
2
Q
What the relationship between salary, break even multiplier, profit, and chargeable rate?
A
hourly salary * break even multiplier + profit = chargeable rate per hour
3
Q
what does the billable rate include?
A
direct labor, indirect labor, and profit
4
Q
what does the break even rate include?
A
direct labor & indirect labor
5
Q
how do you calculate the break even multiplier?
A
(direct salaries + total overhead) / direct salaries
or overhead rate + 1
6
Q
how do you calculate the overhead rate?
A
total overhead (inclu indirect salary) / total direct labor expenses
