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Managerial And Cost Accounting Formulas

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Managerial/Cost Accounting Formulas

It is the branch of the accounting, which talks and narrates more about the formulas of accounting and maintain the cost accountancy. Accounting assignment experts who provide accounting assignment help suggest some of the best accounting formulas which are mentioned below are-


Cost Accounting Formulas

Cost of Goods Sold formulas

  • Conversation Cost = Direct labor cost + Factory Overhead Cost
  • Cost of Goods Manufactured (COGM) = Direct Factory Cost + Opening Work in Progress Inventory – Ending Work in Progress Inventory
  • Cost of Goods Sold (COGS) = Cost of Goods Manufactured + Opening Finished Goods Inventory – Ending Finished Goods Number of Units Manufactured = Units Sold + Ending Finished Goods Units – Opening Finished Goods Units
  • Per unit cost of goods manufactured = Cost of goods manufactured / Units manufactured
  • Materials used = Opening inventory + Net purchases of materials – Ending inventory of materials

The system of accounting is not bounded with only specific formulas which are mentioned above, it also caters its own categorization of formulas. Accounting assignment writing services provider suggests some of the best implemented formulas which are also known as Income Statement Formulas and they are-


Income Statement Formulas

  • Gross Profit = Net sales – Cost of goods sold
  • Operating Profit = Gross profit – Operating expenses
  • Commercial Expenses = Marketing / Selling expenses + Administrative/General expenses
  • Per Unit Gross Profit = Gross profit / No. of units sold
  • Per unit net profit = Net profit / No. of units sold
  • Percentage of gross profit to sales = (Gross profit / Net sales) x 100
  • Percentage of Net Profit to sales = (Net profit / Net sales) x 100

Cost Volume Profit (CVP) Formulas

  • Contribution margin = Sales – Variable expenses
  • Net Operating Income = Contribution margin – Fixed expenses (Manufacturing & non manufacturing)
  • Contribution margin ratio = Contribution margin / Sales
  • Break Even Points (units) = Fixed expenses / unit contribution margin
  • Break Even Points (Dollar sales) = Fixed expenses / CM ratio
  • Unit sales to attain target profit = (Fixed expenses + target profit) / Unit contribution margin
  • Dollar sales to attain target profit = (Fixed expenses + target profit) / Contribution margin ratio
  • Margin of Safety = Total budgeted or actual sales – break even sales
  • Margin of safety percentage or margin of safety ratio = Margin of safety / Total budgeted or actual sales
  • Degree of Operating leverage = Contribution margin / Net operating income

The above formulas work perfectly with the balancing of accounting. However, to know more about it, you can get the best accounting assignment help from the experts who can guide you with the best knowledge and precise information of it.

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