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AAT Budgeting L4 AQ2016 > Extras > Flashcards

Flashcards in Extras Deck (15)
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1

Machine utilisation formula

Production requirement / maximum total machine capacity. X. 100%

2

Wastage %

£ X 100 / 100 - wastage %)

3

Production capacity - materials

Total materials used / kilo per unit

4

Production capacity - labour hrs

Mins / 60 mins = ?
Labour hrs / ?

5

Monthly budget - Variable production overheard

1) Mins / 60 mins X No of labour hours = x

2) no of labour hours / x (point 1) = xc

3) VPO / (units produced (p.a) / x (point 1)) X

4) answer from 3 X xc

6

Selling price increases/ decreases


Or


Remove price increase/decrease

Increase —-> Selling price X (100+increase) / 100%


Decrease —-> selling price X. (100-percentage) / 100%


Or


Remove increase —-> selling price X 100 / (100+increase)

Remove decrease—->selling price X 100 / (100-decease)

7

Fixed / Variable cost formula

Total Cost = Fixed Cost + (Variable Costs X units produced)

8

Stepped Cost formula

1) sales volume (original budget) / units per step (in notes) =no of steps

2) total cost (original budget) / no of steps = cost per step

3) actual volume / units per step (in notes) = no of steps (round up) X cost per step (answer 2)

9

Time series analysis formula

Last figure - first figure / no of changes (NOT YEARS)

10

Linear regression formula

Y = M x X + C

Y - forecast
M - increase
X - no of time changes
C - starting value

11

Seasonal variations formula

Y = T + S

Y - actual data
T - trend
S - seasonal variation

12

Index calculation

Forecast price = historical price X (expected/forecast index / historical index)

13

Where to allocate wastage of materials DURING production

Materials USAGE budget

14

Where to allocate wastage of materials BEFORE production?

Materials purchase budget

15

What is a budget

A financial plan for an organisation prepared before the period starts