ECR exam - help guide (equations & payback/irr/npv)

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
fixed costs = sales revenue - variable costs<BR> <BR>contribution = variable cost - selling price<BR><BR>Break even = fixed costs/ contribution<BR><BR>activity level = FC + target profit / contribution<BR><BR>margin of safety = (budgeted sales - break even sales)/ budgeted sales x 100<BR><BR>Profit volume ratio = contribution/ sales x 100<BR><BR>limiting factor = contirbutiion/ time<BR><BR>sales revenue = sales per unit x unit selling price<BR><BR>budgeted fixed overhead absorption rate = direct labour hours/ budget nos. of direct labour hours<BR><BR>unit production = total cost of finished goods / number of finished goods<BR><BR>Reorder level = max usage x max lead time<BR><BR>Payback = the length of time for an intial investment to be repaid out of the net cash inflows from a project<BR>IRR = the discount rate / interest that will result in a NPV of zero for a set cash flows<BR>NPV =the total of the individual present values of the cash flows

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR exam - help guide (equations & payback/irr/npv)

    you must have passed, you sound clued up on it all
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR exam - help guide (equations & payback/irr/npv)

    Did you cpy them from a book? or is it all in your head?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR exam - help guide (equations & payback/irr/npv)

    it was in my head, problem was i knew the equations, however i don't reallly know how to use them on the paper, i got totally lost in section 2, my numbers dont make sense - i hope the examiner uses follow through errors. The only thnig i know i got right was the NPV & payback section

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