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ACCA F2 Formulas

Reorder level, minimum level, and maximum level formulas are provided to calculate stock levels. Economic order quantity and economic batch quantity formulas are given to determine optimal order sizes. Formulas for calculating wages under hourly and piecework payment schemes as well as idle time ratio and labor turnover rate are also listed. The correlation coefficient formula is presented to measure the strength of association between two variables.

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3K views1 page

ACCA F2 Formulas

Reorder level, minimum level, and maximum level formulas are provided to calculate stock levels. Economic order quantity and economic batch quantity formulas are given to determine optimal order sizes. Formulas for calculating wages under hourly and piecework payment schemes as well as idle time ratio and labor turnover rate are also listed. The correlation coefficient formula is presented to measure the strength of association between two variables.

Uploaded by

abstract_art1117
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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F2 Formulas

Reorder Level = maximum usage x maximum lead time


Minimum level = reorder level (average usage x average lead time)
Maximum level = reorder level + reorder quantity (minimum usage x minimum
lead time)
Average stock = Buffer stock +

Order Quantity
2

Economic order quantity (EOQ) =

2 xC o x D
Ch

Economic batch quantity (EBQ) =

2x Co x D
D
C h(1 )
R

Wages (Hourly rate scheme) = Hours worked x rate of pay per hour
Wages (Piecework scheme) = Units produced x rate of pay per unit

Idle time ratio =

Idle hours
x 100
Total hours

Labour turnover rate =

Correlation coefficient =

Replacments
x 100
averagenumber of employees
n XY X Y
(n X 2( ))

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