Cost Accounting Formulas PDF
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This document provides a comprehensive list of formulas used in cost accounting, including those for cost per unit, efficiency ratio, and production volume ratio. The formulas are presented in a clear and organized table format. Understanding these formulas is crucial for students and professionals in business management.
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+-----------------------------------+-----------------------------------+ | Cost per unit | = total costs of production/ | | | total units produced | +===================================+===================================+ | Ef...
+-----------------------------------+-----------------------------------+ | Cost per unit | = total costs of production/ | | | total units produced | +===================================+===================================+ | Efficiency ratio | = standard hours produced/ actual | | | hours worked\*100 | +-----------------------------------+-----------------------------------+ | Capacity utilization ratio | = actual hours worked/ budgeted | | | hours\*100 | +-----------------------------------+-----------------------------------+ | Production volume ratio | = standard hours produced/ | | | budgeted hours\*100 | | | | | | = standard hours produced/ actual | | | hours worked \* actual hours | | | worked/ budgeted hours | | | | | | = efficiency ratio \* capacity | | | ratio | +-----------------------------------+-----------------------------------+ | IDLE time ratio | = IDLE hours/total hours\*100 | +-----------------------------------+-----------------------------------+ | Gross profit | = sales - production expense | +-----------------------------------+-----------------------------------+ | Production expenses | = direct materials + direct labor | | | + production overheads | +-----------------------------------+-----------------------------------+ | Gross profit margin | = gross profit/sales\*100 | +-----------------------------------+-----------------------------------+ | Operating profit | = gross profit - operating | | | expense | +-----------------------------------+-----------------------------------+ | Operating expense | = production costs + distribution | | | & marketing expense + | | | administration expense | +-----------------------------------+-----------------------------------+ | Profit to sales ratio (profit | = operating profit/sales\*100 | | margin) | | +-----------------------------------+-----------------------------------+ | Net profit | =operating profit - interest paid | | | on debenture and tax | +-----------------------------------+-----------------------------------+ | Net profit margin | =net profit/sales\*100 | +-----------------------------------+-----------------------------------+ | Asset turnover | = sales/ capital employed | +-----------------------------------+-----------------------------------+ | ROCE (ROI) | = profit before interest & | | | tax(sales)/ capital employed\*100 | | | | | | = sales / capital employed \* | | | profit before tax/ sales | | | | | | = asset turnover \* profit margin | +-----------------------------------+-----------------------------------+ | Residual income(RI) | = profit before tax - notional | | | interest (capital | | | employed\*interest) | +-----------------------------------+-----------------------------------+
