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Managament Accounting Formula

This document provides a formula sheet for management accounting concepts including: 1) methods for segregating variable and fixed costs using high-low and least squares methods, 2) reconciling profits under absorption and variable costing using inventory changes and overhead rates, 3) calculating break even points using cost, volume, and profit formulas for single or multiple products, and 4) calculating material, labor, and overhead variances under a standard costing system.

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Richa Shahi
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209 views7 pages

Managament Accounting Formula

This document provides a formula sheet for management accounting concepts including: 1) methods for segregating variable and fixed costs using high-low and least squares methods, 2) reconciling profits under absorption and variable costing using inventory changes and overhead rates, 3) calculating break even points using cost, volume, and profit formulas for single or multiple products, and 4) calculating material, labor, and overhead variances under a standard costing system.

Uploaded by

Richa Shahi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Management Accounting Formula Sheet

A. Segregation of Variable & Fixed Cost

1. High & Low Cost Method

2. Least Square Method

Where,


B. Absorption Costing & Variable Costing

Profit as per Absorption Costing xxxxxx


Profit as per Variable Costing xxxxxx
Difference to be Explained (A) xxxxx
Ending Inventory (In Units) xxxx
Beginning Inventory (In Units) xxxx
Change in Inventory (In Units) (B) xxxx
Fixed Manufacturing Overhead Rate (C) xx
Profit to be reconciled the following equation should be true:

C. Cost Volume Profit Analysis (Break Even Analysis)

OR

OR
OR

To analyze two periods Financial Statement if the Fixed Cost remains Constant:

Required Sales to earn desired level of Profit


Required Sales to earn desired level of Profit after tax

D. Cost Volume Profit Analysis (Break Even Analysis)- Multiple Products


E. Standard Costing

1. Material Variance

2. Labour Variance
3. Overhead Variance

)
***ALL THE BEST***

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