Flashcards
may exam
Flashcards do conjunto (32)
- 1give 2 causes of depreciationwear and tear, erosion and decay, depletion, obsolescence, inadequacy, passage of time
- 2what is the equation for gross profit mark up(gross profit / cost of sales) x 100
- 3what is the equation for expenses in relation to revenue(expenses / revenue) x 100
- 4what is the equation for profit in relation to revenue(profit before tax / revenue ) x 100
- 5what is the equation for capital employedcapital (opening or closing) + non current liabilities
- 6what is the equation for rate of inventory turnover daysaverage inventory / cost of sales x 365 days
- 7what is the equation for rate of inventory turnovercost of sales / average inventory
- 8what is the equation for dividend yield(dividend per share / market price per share) x 100
- 9what does the dividend yield meandividend as % of share price
- 10what is the equation for earnings per shareearnings (profit after tax) / no. of issued ordinary shares
- 11what does the earnings per share ratio meanmeasures profit, usually expressed in pence earned by each share after tax
- 12what is the equation for dividend coverprofit after interest and tax / ordinary share dividends paid
- 13what does the dividend cover meanmargin of safety between the amount of profit a company makes and the amount paid in dividend
must be higher than 1 if the company is not to use past retained earnings to fund the current dividend - 14what is the equation for price earningscurrent market price / earnings per share
- 15what does the price earnings ratio meancompares the current market price of a share with the earnings - expensiveness - high = expected improvement in earnings
- 16what is the equation for interest coverprofit before interest and tax / interest payable
- 17what does interest cover ratio meanmargin of safety of a profit over the finance costs of the business, higher = better as less interest payable
- 18what is activity based costingthe idea that the cause of a cost which is important and not whether it is fixed or variable
- 19what is a cost poolgroups of overheads that are incurred by the same activities
- 20what is a cost driverthe factors that cause costs of an activity and also cause these costs to change
- 21what is the equation for cost rate per activitycost pool / cost driver
- 22what is the use of absorption costingdecision making as it includes a proportion of fixed costs into each cost unit
- 23give a benefit of absorption costingall costs are considered (total production costs are identified)
- 24give a disadvantage of absorption costingmay not be relevant for all overheads, if inventory decreases a lower profit will be recorded
- 25what is the use of activity based costingdecision making as it associates costs with the usage of activity
- 26give a benefit of activity based costingavoids apportioning overheads using a basis that may not be relevant, size influences costs
- 27give a disadvantage of activity based costingcost pools may be caused by several cost drivers not just one
- 28what is an indirect costcosts that cannot be identified with actual production units
- 29what is contributionthe difference between selling price and variable cost per unit
- 30what is the equation for break even unitsfixed costs / contribution
- 31what is the equation for units for a target profit(fixed costs + target profit) / contribution per unit
- 32what is the equation for profit involving contribution, units and fixed costs(units x contribution) - fixed costs
Informações
- Descrição
- A level Accounting FlashCards sobre may exam, criado por Olivia Harlington em 05-04-2021.
- Criado por
- Olivia Harlington · abr 2021
- Atualizado
- 12 mai 2021
- Visualizações
- 0
- Avaliação