ACCA MA1 Management Information Complete Formula Sheet

1. Accounting Equation


Assets = Capital + Liabilities + Profit - Drawings

2. Free Inventory


Free Inventory = Inventory in Stores + Inventory Purchased - Inventory Issued

3. Raw Material Purchases


Raw Material Purchases = Raw Material Usage + Closing Inventory - Opening Inventory

4. Overhead Absorption Rate (OAR)


OAR = Total Budgeted Overhead / Total Budgeted Activity

5. Contribution

 Total = Total Sales Revenue - All Variable Costs


 Per Unit = Selling Price per Unit - Variable Cost per
Unit

6. Profit


Profit = Total Contribution - Fixed Overheads

7. Batch Costing (Cost per Unit)


Cost per Unit = Total Cost of Batch / Total Units

8. Process Costing (Cost per Unit)


Cost per Unit = Net Cost of Input / Expected Output

9. Process Costing with Normal Loss


Cost per Unit = (Total Input Cost - Scrap Value) / (Input Units - Normal Loss Units)

10. Service Costing


Cost per Service Unit = Total Cost of Service / Units Used

11. Efficiency Ratio

, (Standard Hours / Actual Hours) × 100

12. Capacity Ratio


(Actual Hours / Total Budgeted Hours) × 100

13. Production Volume Ratio


(Standard Hours / Total Budgeted Hours) × 100

14. Capital Employed


Capital Employed = Assets - Current Liabilities

15. ROCE (Return On Capital Employed)


(Operating Profit / Capital Employed) × 100

16. Asset Turnover


Revenue / Capital Employed

17. Residual Income


Profit - (Capital Employed × Interest Rate)

18. Total Cost


Total Cost = Fixed Cost + (Variable Cost per Unit × Units)

19. High-Low Method


 Variable Cost per Unit = (High Cost - Low Cost) / (High Units - Low Units)



 Fixed Cost = High Cost - (Variable Cost × High Units)

20. OAR per Unit


Total Budgeted Overhead / Total Budgeted Units

21. Apportionment Cost