Formulas Flashcards
Target Costing?
Target selling price - Target profit margin
Total supplier Cost?
Unit activity cost + order level activity cost + supplier level activity cost
Supplier Performance Index?
Total Supplier Cost / Total Purchase Price
Economic Order Quantity
√2 x annual requirement x cost per order / annual carrying cost per unit
Total annual inventory cost?
no of orders x cost per order + order quantity/2 x annual carrying cost per unit
expected number of orders per year?
annual demand / EOQ
Safety stock?
[max demand per period of time - average inventory usage per period of time] x lead time
Inventory Re-Order period
[Inventory used per period of time x lead time] + safety stock
Transfer price?
VC per unit + oppor cost per unit
Return on Investment?
Profit b4 tax / Average invested capital
Residual Income?
Profit - [invested capital x imputed interest rate]
Economic Value added?
Net operating profit after tax - [invested capital x weighted average cost of capital]
Invested capital?
total assets - current liabilities
