Ratios and Formulas for Final Flashcards Preview

Managerial Accounting > Ratios and Formulas for Final > Flashcards

Flashcards in Ratios and Formulas for Final Deck (11)
Loading flashcards...
1
Q

ROI

A

=operating income (or segment margin)/average operating assets

2
Q

ROI

A

= margin x turnover

3
Q

Margin

A

= operating income / sales

4
Q

Turnover

A

= sales / average operating assets

5
Q

RI

A

= operating income - (average operating assets x required rate of return)
= segment margin - (assets x required rate of return)

6
Q

BEP($)

A

= TFC / CM%

7
Q

BEP($)

A

= TFC / CMu

8
Q

margin of safety

A

= sales - BEP

9
Q

operating leverage

A

= CM / OI

10
Q

sales mix($)

A

= sales / total assets

11
Q

sales mix(units)

A

sales A / Sales A + B