Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

Normal Size Small Size show me how

# Unit IV

### Accounting 212

Term | Computation |
---|---|

Break-even point in units | Fixed Costs/Contribution Margin per unit |

Break-even point in dollars | Fixed Costs/Contribution Margin Ratio |

Contribution margin ratio | Contribution margin per unit/Sales price per unit |

Contribution margin income statement | Sales - Variable Costs = Contribution Margin - Fixed Costs = Net Income |

Production budget | Budgeted ending inventories (% of next quarter) + Budgeted sales for the quarter = Required units of available production - Budgeted beginning inventories = Units to be produced |

Cost Variance (CV) | Actual Cost - Standard Cost |

Actual Cost (AC) | Actual Quantity (AQ) x Actual Price (AP) |

Standard Cost (SC) | Standard Quantity (SQ) x Standard Price (SP) |

Quantity Variance | Actual Quantity (AQ) x Standard Price (SP) - Standard Quantity (SQ) x Standard Price (SP) |

Price Variance | Actual Quantity (AQ) x Actual Price (AP) - Actual Quantity (AQ) x Standard Price (SP) |

Labor Cost Variance | Actual Direct Labor Cost - Standard Direct Labor Cost |

Rate Variance | Actual Hours (AH) x Actual Rate (AR) - Actual Hours (AH) x Standard Rate (SR) |

Efficiency Variance | Actual Hours (AH) x Standard Rate (SR) - Standard Hours (SH) x Standard Rate (SH) |

Overhead Cost Variance (OCV) | Actual Overhead Incurred (AOI) - Standard Overhead Applied (SOA) |

Total Overhead Variance | Controllable Overhead - Volume Variance |

Controllable Variance | Actual Overhead Applied (given) - Applied Total Overhead (from flexible budget) |

Payback Period | Cost of Investment/Annual Net Cash Flow |

Accounting Rate of Return | After-tax Net Income / Average Amount Invested |

Average Amount Invested | Beginning Book Value + Ending Book Value / 2 |

Net Present Value | PV of Net Cash Flows - Amount Invested |

Created by:
1171489427
on 2013-12-13