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Exam (elaborations)

CSUF Acct 201b Formulas – Complete Study Guide

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CSUF Acct 201b Formulas – Complete Study Guide

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CSUF Acct 201b Formulas – Complete Study Guide

turnover Right Ans - = sales / average operating assets

margin Right Ans - = net / sales

return on investment Right Ans - = net op income / avg op assets

labor efficiency variance Right Ans - = SR (AH - SH)

labor rate variance Right Ans - = AH (AR - SR)

residual income Right Ans - = net income - ( avg op assets x min req rate of
return )

internal rate of return Right Ans - = investment req / annual cash inflow

profitability index Right Ans - = pv of cash inflows / investment req

simple rate of return Right Ans - = annual incr net / initial investment

materials price variance Right Ans - = AQ ( AP-SP )

materials quantity variance Right Ans - = SP ( AQ - SQ )

payback period Right Ans - = investment req / annual net cash flow

net present value Right Ans - = cash inflows - outflows

conversion cost Right Ans - = dl + manufacturing ovhd

cost of goods sold Right Ans - = (beg inv + purchases) - end inv

raw materials used in production Right Ans - = beginning raw materials inv
+ purchases of raw materials - ending raw materials inv

cost of goods manufactured Right Ans - beginning wip inv + total
manufacturing costs - ending wip inv

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