ECR Formulas - last minute panic!

System
System Posts: 100,534 🤖 Admin 🤖
Ok I've got the following formulas written down, have I missed any out or written them down incorrectly? I did do very well on my mock remembering these formulas but I'm really rather nervous still.
Reorder Level = buffer stock + (budgeted usage X maximum lead time)
Contribution = sales price - variable costs
Break Even point = fixed costs/ contribution per unit
MoS = Forecast sales - break even sales
% MoS = forecast sales - break even sales units / forecast sales
MoS units = budgeted sales units - break even point
Budgeted OAR = total overheads/ total budgeted labour hours
Sales vol to reach target profit = fixed costs + required profit/ contribution per unit
PV ratio (contribution to sales ratio) contribution/selling price
Process costing
Input = output units + total loss units
Cost per unit of output = (total process costs - normal loss proceeds)/expected output

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:ECR Formulas - last minute panic!

    they all look ok to me. I never write them down, remember most of them ok. I think sometimes it helps me *not* to write them down, and do a paper or a few questions, and try to use them - you know, remember and work out what the formula should be, becuase you know what figures you have to work with and stuff. That way, i am confident if i forget i don't have to panic, i can work out what it is. And i feel more proud when i get them right.
    But yeah, them all seem fine.

    Good luck - and Don't Panic! :-)
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