acca ma
Materials variances
Price variance:
actual quantity x actual price
actual quanity x standard price
usage variance:
actual usuage of raw material - standard usage for actual output (units x kg per unit) x std price PU
labour idle time variance
actual hours paid - actual hours worked = difference x standard cost per hour
FOH Expenditure variance
actual total fixed OH - original budget fixed OH
FOH Volume Variance
actual production - budget production = difference x standard fixed cpu
FOH efficiency variance
actual hours worked - standard hours for actual production (std hours x actual prod) = difference x std FOH cost
FOH Capacity variance
actual hours worked - original budget hours = difference x std FOH
sales volume variance
AC: actual sales - budget sales = difference x std profit PU
MC: difference x contribution (sp-vc)
sales price variance
actual sales at actual selling price - actual sales x std selling price
return on capital employed (ROCE)
profit before interest and tax (operating profit) / long term capital (share capital + reserves + non current liabilities) x 100 (ROS + AT)
net profit margin
profit before interest and tax (OP) / sales x 100
asset turnover
revenue/sales / long term capital
gross profit margin
gross profit / revenue x 100
current ratio
current assets (inventory + receivables + cash) / CL X 100
quick ratio (acid test)
(Current assets - inventory) / CL
average collection perod
receivables / sales x 365
average payment period
payables / purchases on credit x 365
inventory days
inventory / COS X 365
gearing/risk
non current liabilites / share capital + reserves x 100 (higher = more riskier)
interest cover
profit from operations / interest (lower = more risky)
Return on investment (ROI)
controllable profit / controllable capital employed (total assets - CL or total equity + long term debt) x 100
production volume ratio
actual output in standard hours / budget production hours x 100
capacity ratio
actual production hours / budgeted production hours x 100
efficiency ratio
actual output in standard hours / actual production hours x 100
Return on sales
operating profit / revenue
Labour & variable OH variances
actual hours x actual rate
actual hours x standard rate
standard hours per unit x actual production x standard rate
Rate variance = difference between tow 1 & 2
Efficiency variance = difference between row 2 & row 3
Row 3 difference should match 1 & 2
AC/MC profit
From AC to MC:
(OI - CI) x OAR then - from AC profit
From MC profit
(CI - OI) x OAR then + to AC profit
CI more than OI = AC profit more
OI more than CI = MC profit more
Perpetuity NPV
Cash flow / interest decimal - initial investment
IRR
L + NPV L / (NPV L - NPV H) x (H-L)
Linear regression
y = a + bx
y = value of dependent variable (on vertical axis)
a = intercept (fixed costs)
b = slope if the line (variable costs)
x = independent variable (horizontal axis
annuity
1 -(interest decimal e.g. 1.10) power of how many years / interest as decimal
IRR of perpetuity
annual inflow / initial invesment x 100