Managerial Accounting Final Exam Formula Study Guide – Flashcards
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Formula for Break Even in Units
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Fixed Costs/Contribution Margin Per Unit
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Formula for Break Even in Sales
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Fixed Costs/Contribution Margin Ratio
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Unit Contribution Margin
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Sales Price - Variable Cost per unit
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Contribution Margin Ratio
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Unit Contribution Margin /Sales Price
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Total Contribution Margin
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Total Sales - Total Variable Cost
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Return on Investment
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Net Operating Income/Average Invested Assets
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Residual Income
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Net Income - (Invested Assets x Hurdle Rate)
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Profit Margin
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Net Operating Income/Sales Revenue
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Investment Turnover
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Sales Revenue/Invested Assets
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Accounting Rate of Return
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Net Income/Net Investment
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Payback Period
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Initial Investment/Annual Cash Flow
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Net Present Value
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Present Value of Future Net Cash Flows - Present Value of Initial Investment
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Profitability Index
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Present Value of Future Cash Flows/Present Value of Initial Investment
