Accounting and Finance Exam

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  • Created by: ZacBudd
  • Created on: 30-05-18 16:27
How do you calculate contribution per unit?
Selling price per unit - Variable cost per unit
1 of 10
How do you find the total absorption cost per unit?
total variable cost + fixed overhead cost per unit.
2 of 10
How do you find the Contribution to sales ratio (CS ratio)?
contribution per unit/selling price per unit.
3 of 10
How do you find the Sales Level needed to make required profit?
(Fixed costs + required profit)/contribution per unit
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How do you find the Break-even point (BEP) in units?
Fixed costs/contribution per unit
5 of 10
How do you find the BEP in £ sales revenue?
(Fixed costs/contribution per unit) x selling price OR Fixed costs/CS ratio
6 of 10
How do you find the Margin on safety (M of S) in units?
budgeted sales units – break-even sales units
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How do you find the M of S as a percentage?
(M of S in units/budgeted sales) x 100
8 of 10
How do you find the M of S in £ sales revenue?
(budgeted sales units – break-even sales units) x selling price
9 of 10
How do you find the Contribution per limiting factor?
contribution per unit/amount of scarce resource used.
10 of 10

Other cards in this set

Card 2

Front

How do you find the total absorption cost per unit?

Back

total variable cost + fixed overhead cost per unit.

Card 3

Front

How do you find the Contribution to sales ratio (CS ratio)?

Back

Preview of the front of card 3

Card 4

Front

How do you find the Sales Level needed to make required profit?

Back

Preview of the front of card 4

Card 5

Front

How do you find the Break-even point (BEP) in units?

Back

Preview of the front of card 5
View more cards

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