Managerial AccountingFinal Review KnappFormulas:COGS=Beg. FG + COGM End. FGCOGM=DL + DM + MOA + Beg. WIP – End WIPCOGS (Merchandising)=Beg. Merchandising Inventory + Purchases + EndingMerchandising InventoryContribution Margin=Sales Revenue – Variable CostsContribution Margin=SalesVCProfit=(SalesVC)FCCM Ratio=CM/SalesVariable Expense Ratio=VC/SalesTarget Profit (Units)=(Target profi
...[Show More]
Managerial AccountingFinal Review Knapp
Formulas:
COGS=Beg. FG + COGM End. FG
COGM=DL + DM + MOA + Beg. WIP – End WIP
COGS (Merchandising)=Beg. Merchandising Inventory + Purchases + Ending
Merchandising Inventory
Contribution Margin=Sales Revenue – Variable Costs
Contribution Margin=SalesVC
Profit=(SalesVC)FC
CM Ratio=CM/Sales
Variable Expense Ratio=VC/Sales
Target Profit (Units)=(Target profit + FC)/Unit CM
Target Profit (Sales)=(Target profit + FC)/CM Ratio
Margin of Safety=Total SalesBreak Even Sales
Margin of Safety Percentage=MOS/Total Sales
Degree of Operating Leverage=CM/Net Operating Income
Predetermined Overhead Rate=Total Manufacturing Overhead/Total Activity Base
Price Variance=(AQ X AP) – (AQ X SP)
Quantity Variance=(AQ X SP) – (SQ X SP)
Payback Period=Initial Investment/Annual Net Cash Flow
Net Present Value (NPV)=(Money Saved X number from PV table) – Initial Invest.
Initial Rate of Return (IRR)=(Annual Net Cash Inflow X Factor) – Initial Investment
[Show Less]
-preview.jpeg)
-preview.jpeg)
-preview.jpeg)
