ACCTG 211 Exam 5 Formulas Test Questions All Solved.

ACCTG 211 Exam 5 Formulas Test
Questions All Solved.
Target cost formula - Answer price - desired profit



Cost-Plus price/ target revenue formula - Answer total cost* + desired profit



Total cost formulas - Answer COGS + Period costs



or



fixed costs + variable costs



per-unt sales price formula - Answer target revenue/# of units



Payback period formula for even/equal cash flows - Answer amount invested / expected annual net
cash flows



Payback period formula for uneven/unequal cash flows - Answer # of years (prior to year of recovery) +
(amount needed to complete recovery / projected net cash flow in year of recovery)



amount needed to complete recovery = amount needed to payback - net cash flow year before recovery



Accounting rate of return formula - Answer average annual after-tax net income / initial investment



or



(average annual net cash flows - annual depreciation expense) / initial investment