Formula-Managerial Accountg
Append below some formulas on cost-volume-profit relationships and costing:
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BREAKEVEN ANALYSIS FORMULAS |
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Contribution |
Sales minus marginal(variable) cost |
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Contribution |
Fixed cost plus profit |
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Profit |
Contribution minus fixed cost |
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Contribution sales ratio |
Contribution sales |
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Breakeven point (quantity) |
Fixed cost Contribution per unit |
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Breakeven point-(value) |
Sales value x fixed cost Total contribution |
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Breakeven point -(value) |
Fixed cost Contribution sales ratio |
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Margin of safety |
Sales level minus breakeven point ( quantity) |
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Margin of safety |
Profit Contribution sales ratio |
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OVERHEAD COSTING FORMULAS |
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Predetermined absorption rate |
estimated or budgeted overhead for the period estimated or budgeted units of base for the period |
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Direct material cost % rate |
budgeted overhead x 100 budgeted direct material costs |
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Direct labor cost % rate |
budgeted overhead x 100 budgeted direct labor cost |
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Prime cost % rate |
budgeted overhead X 100 prime cost |
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Direct labor hour rate |
budgeted overhead budgeted direct labor hours |
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Machine hour rate |
budgeted overhead budgeted machine hours |
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Cost unit rate |
budgeted overhead budgeted output |
