Flashcards
AAT - Level 3 Formulas
Cards in this deck (39)
- 1Variable Cost per unit(Highest Cost - Lowest Cost)/(Highest Activity - Lowest Activity)
- 2Hi Low MethodTotal cost = Fixed cost - (variable cost x activity)
- 3Cost per unitTotal Cost/Activity
- 4Flexed Budget(Original budgeted activity/Original budgeted cost) x new activity
- 5Revenueunits sold x sales price
- 6ProfitRevenue - cost
- 7Economic Order Quantity√2 x (cost of ordering x annual demand)/cost of holding one unit for one year
- 8Reorder Levelmaximum demand x maximum lead time
- 9Reorder Level with buffer(Maximum demand x maximum lead time) + buffer
- 10Minimum Inventory LevelReorder level - (average demand x average lead time)
- 11Maximum Inventory levelReorder Level + EOQ - (minimum demand x minimum lead time)
- 12Overtime Premium(Basic pay x multiplier) - Basic pay
- 13Direct CostsPrime costs
- 14Overhead Absorption RateBudgeted Costs/Budgeted activity
- 15Marginal CostingOnly uses variable costs
- 16Unit ContributionSales - variable cost
- 17Cost c/f to next periodInventory x OAR
- 18Difference in profit absorption and marginal costingInventory movement x OAR
- 19SIAMStock increasing mean absorption will have more profit
- 20ContributionRevenue - variable cost
- 21Breakeven point in Unitsfixed costs/contribution
- 22Breakeven in RevenueBreakeven point in units x selling price
- 23Target Units(Fixed costs + target profit)/unit contribution
- 24Margin of safety in unitsBudgeted or actual sales - breakeven sales volumes
- 25Margin of safety as a %(Margin of safety in units/budgeted actual sales) x 100
- 26Profit to Volume/ Contribution to sales ratio in units(Unit contribution/ unit price) x 100
- 27Profit to Volume/ Contribution to sales ratio in %(Total Contribution/Total Revenue) x100
- 28Target Revenue(Fixed costs + Target Profits)/ contribution to sales ratio
- 29Limiting Factors Step 1Amount needed = (cost of materials/price per unit) x demand
- 30Limiting Factors Step 2Calculate unit contribution for each product (Revenue - variable cost)
- 31Limiting Factors Step 3Contribution/ Limiting Factor
- 32Limiting Factors Step 4Rank the Products by amount of contribution the have make the one with the most contribution first
- 33Limiting Factors Step 5Production Schedule
Cap of materials show how much you can make of each product before you run out of material in order of rankings - 34Payback Period Internal Rate of Returna% + (npv a/(npv a – npv b)) x (b% - a%)
- 35NPVNet Present Value
- 36Process Costing Step 1Unit Calculation compare what was put in to the process to what came out (in whole pounds)
- 37Process Costing Step 2Update the process account with available information
Materials in on the left
Materials out on the right
MUST BALANCE - 38Process Costing Step 3Calculate the unit cost of output
(Cost of input - normal loss value)/ (input units - normal loss units)
in pound and pence - 39Process Costing Step 4Complete the process account to include normal loss coming out of the process
Information
- Description
- Level 3 Management Accounting Costing
- Created by
- Emma Cattermole · Dec 2016
- Updated
- Dec 11, 2017
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- 4,061
- Rating