Part 1 A Flashcards
A (30 cards)
- Weighted average cost of capital (WACC)
= (Debt % of Capital * Debt Yield *(1-tax rate)) +(Equity % of capital) *Required Rate of return on equity)
Break-Even Sales (in dollars)
Fixed Costs / Contribution Margin Ratio
Break-Even Sales (in units)
Fixed Costs / Contribution Margin per Unit
Contribution Margin per Unit
Sales Price per Unit – Variable Cost per Unit
Contribution Margin Ratio
Contribution Margin / Sales
Margin of Safety (in dollars)
Actual Sales – Break-Even Sales
Margin of Safety (%)
Margin of Safety in Dollars / Actual Sales
Direct Materials Price Variance
(AP – SP) × AQ
Direct Materials Quantity Variance
(AQ – SQ) × SP
Direct Labor Rate Variance
(AR – SR) × AH
Direct Labor Efficiency Variance
(AH – SH) × SR
Variable Overhead Spending Variance
Actual VOH – (AH × SVOR)
Variable Overhead Efficiency Variance
(AH – SH) × SVOR
COGS (FIFO)
Beginning Inventory + Purchases – Ending Inventory
Ending Inventory (FIFO)
Newest costs remain in inventory
Ending Inventory (LIFO)
Oldest costs remain in inventory
Weighted Average Unit Cost
Total Cost of Inventory / Total Units Available
COSO Control Components
Control Environment, Risk Assessment, Control Activities, Information & Communication, Monitoring (CRIME)
IMA Ethical Principles
Honesty, Fairness, Objectivity, Responsibility
IMA Ethical Standards
Competence, Confidentiality, Integrity, Credibility (CCIC)
Current Ratio
Current Assets / Current Liabilities
Quick Ratio
(Current Assets – Inventory – Prepaids) / Current Liabilities
Receivables Turnover
Net Credit Sales / Average Receivables
Inventory Turnover
COGS / Average Inventory
