B1 (cpa)
Becker College
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Formulas Becker Part 1
Part 1 Formula Reference Guide 
Term Formula Unit 
Absorption 
costing 
equation 
− 
Revenue 
Less: cost of goods sold 
− 
Gross margin 
Less: operating expenses (both fixed and variable) 
Net income 
2 
Accounting 
equation (or 
balance sheet 
equation) 
Assets = Liabilities + Owners' equity (or stockholders' equity) 1 
Asset turnover Asset turnover = 
Sales 
Assets 
4 
Budgeted 
production 
Budgeted sales 
+ Desired ending inventory 
– Beginning inventory 
Budgeted production 
3 
Cash bu...