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
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
