Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 663 views

    Ma1 Management Information: Compiled By: Shahab Shafi

    Uploaded by

    shahab
    The document provides formulas and definitions for key accounting and costing terms including prime cost, conversion cost, production cost, absorption cost, marginal cost, performance measurement for cost and profit centers, and investment center calculations like return on capital employed and residual income. It was compiled by Shahab Shafi of the SKANS School of Accountancy in Peshawar.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Ma1 Management Information: Compiled By: Shahab Shafi

    Uploaded by

    shahab
    663 views2 pages
    The document provides formulas and definitions for key accounting and costing terms including prime cost, conversion cost, production cost, absorption cost, marginal cost, performance measurement for cost and profit centers, and investment center calculations like return on capital employed and residual income. It was compiled by Shahab Shafi of the SKANS School of Accountancy in Peshawar.

    Original Title

    ma1 formulas

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides formulas and definitions for key accounting and costing terms including prime cost, conversion cost, production cost, absorption cost, marginal cost, performance measurement for cost and profit centers, and investment center calculations like return on capital employed and residual income. It was compiled by Shahab Shafi of the SKANS School of Accountancy in Peshawar.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    663 views2 pages

    Ma1 Management Information: Compiled By: Shahab Shafi

    Uploaded by

    shahab
    The document provides formulas and definitions for key accounting and costing terms including prime cost, conversion cost, production cost, absorption cost, marginal cost, performance measurement for cost and profit centers, and investment center calculations like return on capital employed and residual income. It was compiled by Shahab Shafi of the SKANS School of Accountancy in Peshawar.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    SKANS SCHOOL OF ACCOUNTANCY, PESHAWAR

    MA1 MANAGEMENT INFORMATION


    FORMULA SHEET

    PRIME COST CONVERSION COST


    Direct material X Direct labour X
    Add: Direct labour X Add:Direct expenses X
    Direct expenses X
    =Prime cost XXX =Conversion cost XXX

    PRODUCTION COST
    ABSORPTION COST MARGINAL COST
    SALES XXX SALES XXX
    LESS: COS LESS: COS
    DIRECT MATERIAL (X) DIRECT MATERIAL (X)
    DIRECT LABOUR (X) DIRECT LABOUR (X)
    DIRECT EXPENSES (X) DIRECT EXPENSES (X)
    FPOH (X) VARIABLE COST OF SALES (XXX)
    TOTAL PRODUCTION COST (XXX) =CONTRIBUTION XXX
    =GROSS PROFIT XXX -FPOH (XXX)
    PROFIT XXX
    Contribution=sales-variable costs

    PERFORMANCE MEASURMENT
    COST CENTERS
    1. COST PER UNIT TOTAL COST/TOTAL NO OF UNITS
    2. EFFICIENCY RATIO STANDARD HOURS OF ACTUAL PRODUCTION *100
    ACTUAL HOURS WORKED
    3. CAPICITY RATIO ACTUAL HOURS WORKED *100
    BUDGETED HOURD
    4. PRODUCTION VOLUME RATIO STANDARD HORUS OF ACTUAL PRODUCTION*100
    BUDGETED HOURS

    PROFIT CENTERS
    5. PROFIT MARGIN PROFIT *100
    SALES
    6. GROSS PROFIT MARGIN GROSS PROFIT*100
    SALES
    7. OPERATING PROFIT MARGIN OPERATING PROFIT *100
    SALES
    8. NET PROFIT MARGIN NET PROFIT*100
    SALES

    1 Compiled by: Shahab Shafi


    INVESTMENT CENTER
    ROCE PBIT *100
    Return on capital emplyed CE
    Profit before interest and tax
    Capital employeed= total assets- current liabilities
    RI Controllable profits-notional interest
    Residual income
    Asset turnover Sales/CE= times

    2 Compiled by: Shahab Shafi

    You might also like