Presentation: Equations Flashcards
ROI
(Revenue - costs) / avg. assets
Prime cost
Direct material + direct labor cost
Total manufacturing cost
Prime cost + manufacturing overhead
Total cost
Total manufacturing cost + non manufacturing overhead
Overhead rate
Total overhead / allocation base
Over or under recovery
OH rate * ( actual allocation base - budgeted allocation base)
Adjustment for non-cash items (cashflow)
Provision(x) - provision(x-1) + depreciation
Changes in inventory (cashflow)
Inventory value(x-1) - inventory value(x)
Changes in operating receivables (cashflow)
Account receivable(x-1) account receivable(x)
Changes in operating liabilities (cashflow)
Short term liabilities(x) - short term liabilities (x-1)
Investments (cashflow)
Non current assets (x-1) - non current assets (x) - depreciation
Changes in loans (cashflow)
Long term liabilities (x) - long term liabilities (x-1)
Dividends (cashflow)
Retained earnings(x) - retained earnings(x-1) - net income(x-1)
Cash (balance sheet)
Cash(x-1) + total cashflow from cashflow statement
Contribution margin
Sales revenue - variable cost
Total cost
Fixed cost + variable cost
Break even
Revenue = total cost
Contribution = fixed cost
Units = fixed / contribution margin
Margin of safety
Expected sales volume - volume at break even
Profit (cvp)
Sales revenue * contribution margin ratio) - fixed cost
Contribution margin ratio
Contribution margin / sales revenue
Present value
Future value (n) / (1+ interest rate)^n
Future value
Present value * (1+ interest rate)^n
Net present value
Present value for all years of income - initial investment
Over or under spending with flexible budget
Actual units * budgeted cost per unit - actual cost
