acca F5 formulas

100 cards·by jualkyn

Y = axb

Where Y = cumulative average time per unit to produce x units a = the time taken for thefirstunitof output x = the cumulative number of

Demand curve P

= a – bQ change in price b = change in quantity a = price when Q = 0 MR=MC MR = a – 2bQ

Target Cost

= Sales price – Target profit

Throughput

= Sales revenue – Material cost

Total factory costs

= all production costs EXCEPT materials

Total cost

= Material (variable cost) + labour + Overheads (conversion cost)

Return per factory hour

= Throughput per unit/time taken in bottleneck

Cost per factory hour

= Total factory cost/total time available on bottleneck

Throughput Accounting Ratio

Return per factory hour/Cost per factory hour

TPAR PROFIT OR LOSS?

TPAR > 1 (profit) TPAR < 1 (loss)

Profit per day

throughput contribution – conversion cost

Contribution per unit

= selling price per unit – variable costs per unit

Contribution per hour (return per factory hour)

Throughput per unit / machine hours per unit

Contribution per limiting factor unit

Contribution per unit / number of limiting factorunits needed to produce a unit of product

Price elasticity of demand  how volume is affected depends on the price elasticity (pricechanges) of the service

% change in demand / % change in selling price

Price elasticity of demand elastic or inelastic?

PED >1  Elastic PED < 1  Inelastic

Y = a+bX

Y – the total cost X – number of units being made a – fixed costs b – the variable cost per unit

Contribution

= fixed costs + profit

Contribution

= sales revenue – variable costs

Contribution per unit

= sales price per unit – variable costs per unit

Break-even volume

= fixed costs/ contribution per unit

Break-even point in sales revenue

= fixed costs/ CS ratio

Break-even for multi-product

= fixed costs/weighted average contribution per unit

Weighted average contribution per unit

= Total contribution/Total volume sold

Margin of safety (volume)

= budgeted sales volume – break-even sales volume

Margin of safety (as a %)

= Margin of safety (volume) / budgeted sales volume x 100%

Contribution to sales ratio (single product)

= contribution per unit / selling price per unit

Weighted average c/s ratio (multiple products)

= total contribution / total revenue

Target profit (volume)

= fixed costs + target profit / contribution per unit

Target revenue

= target profit (volume) x selling price per unit OR Fixed costs + target profit / contribution to sales ratio

Target revenue for multi-products

= fixed costs + target profit / weighted average c/s ratio

Sales price sensitivity

= required decrease in sales / total sales

Variable cost sensitivity

= required increase in VC/total VC

Sales volume sensitivity

= decrease in contribution / total contribution

Fixed cost sensitivity

= required increase in FC / total FC

Standard Deviation

√Σp(x-EV)² -EV is the expected value; -p is probability; -x is a possible outcome to quantity the amount of variation around average

Flexed budget variance

= actual cost – flexed cost

Flexed cost

= standard cost x actual units produced

= Σxp X - value of each possible outcome; P - the probability of that outcome arising.

Variable cost per unit

= cost at high activity level – cost at low activity level / high activity level units – low activity level units

Fixed cost

= total cost – variable cost

Material mix variance: FINANCIAL IMPACT of the cost of using different proportions (or mixes) of materials

(AQAM – AQSM) X SC

Material yield variance: Impact of the different materials on the OUTPUT (or yield) from using those materials

(AQSM – SQSM) X SC

Material Usage Variance

= mix + yield

Sales volume variance

= (did sell – forecast) x std contribution or profit

Sales volume variance

= sales mix variance + sales quantity variance

Sales mix variance  proportions of units sold vs expected sales

(AQAM – AQSM) X SCON or P

Sales quantity variance  difference in contribution or profit generated by change in salesvolume vs budgeted sales

(AQSM – SQSM) x SCON or P

Fixed production overhead total variance

= Units produced x standard fixed costs per unit – actual cost

Material planning price variance

(Budgeted standard cost - Revised standard cost) x Actual usage

Material planning usage variance

(Budgeted usage – Revised usage) x Budgeted standard cost

Labour planning variance

Budgeted labour cost - Revised labour cost

Sales planning variance

(budgeted sales volume – expected sales volume) x x standard contribution (aka market SIZE variance)

Material operational price variance

(Revised standard cost – Actual standard cost) x Actual usage

Material operational usage variance

(Revised usage – Actual usage) x Budgeted standard cost

Labour operational variance

= Revised labour cost - Actual labour cost

Sales operational variance

(expected sales volume – actual sales volume) X standard contribution (aka market SHARE variance)

Gross profit margin

= gross profit / sales revenue x 100 %

Return on capital employed (ROCE)

= PBT / capital employed x 100 % OR asset turnover x operating profit margin

Asset turnover

= revenue / capital employed

Earnings per share

= Profit after tax / Weighted average number of ordinary shares

MARK UP 60% PROFIT?

= S x 60 /160

MARK UP 60% COS?

= S/1.6

MARK UP 60% SALES?

= COS x 1.6

MARGIN 60% PROFIT?

= S x 60 /100

MARGIN 60% COS?

= S x 0.4

MARGIN 60% SALES?

= COS / 0.4

r3= 0343

3, shift, ^, 0.343 = 0.7

Labour turnover rate

= (Employees replaced / Average no. of employees) x 100

Labour efficiency ratio

= (Expected or Standard hours / Actual hours) x 100

Labour capacity ratio

= (Actual hours / Budgeted hours) x 100

Labour production volume ratio

= (Expected or Standard hours / Budgeted hours) x 100

Overhead absorption rate (OAR)

= Total overheads / Level of activity

Contribution per unit

= Unit selling price – Unit variable cost

Total contribution

= Total sales – Total variable costs

Material price variance

= Actual quantity x (Actual price – Standard price)

Material usage variance

= (AU - SUA) X SP = (Actual usage – Standard usage allowed for actual production) x Standard price

Labour rate variance

= AA X (AR- SR) = Actual hours x (Actual rate – Standard rate)

Labour efficiency variance

= (AH-SHW) X SR = (Actual hours worked – Standard hours allowed for actual production) x Standard rate

Sales price variance

= AQ X (SP - ASP) = Actual quantity sold x (Standard selling price – Actual selling price)

Sales volume variance (Absorption)

= (BS - AS) X SPM = (Budgeted sales – Actual sales) x Standard profit margin

Sales volume variance (Marginal)

= (BS - AS) X SC = (Budgeted sales – Actual sales) x Standard contribution

Variable overhead expenditure variance

= AO - (AH X VOAR) = Actual overheads - (Actual hours x Variable overhead absorption rate)

Variable overhead efficiency variance

= (Actual hours worked – Standard hours allowed for actual production) x Variable overhead absorption

Fixed overhead expenditure variance

= AFO - BFO = Actual fixed overhead – Budgeted fixed overhead

Fixed overhead capacity variance

= (AH X FOAR) - BFO = (Actual hours worked x Fixed overhead absorption rate) – Budgeted fixedoverhead

Fixed overhead efficiency variance

= (AH - SHA) X FOAR = (Actual hours worked – Standard hours allowed for actual production) x Fixed overhead absorption rate

Operating profit margin

= (Operating profit / Revenue) x 100

Net profit margin

= (Net profit / Revenue) x 100

Current ratio

= Current assets / Current liabilities

Quick ratio (Acid test)

= (Current assets – Inventories) / Current liabilities

Receivable days

= (Trade receivables / Revenue) x 365 days

Inventory days

= (Inventory / Cost of sales) x 365 days

Payable days

= (Trade payables / Purchases) x 365 days

Cash operating cycle

= Inventory days + Receivable days – Payable days

Gearing

= Debt / Equity

Return on investment

= (Net profit / Net assets) x 100

Residual Income

= Net profits – (Total assets x Notional interest rate)

fixed overhead total variance

Actual fixed overhead - (actual output x fixed absorption rate per hour)

fixed overhead volume variance

budgeted fixed overhead - fixed overhead applied to work in progress