ACCA F5考试:COST-VOLUME-PROFIT ANALYSIS (一) 1. THE OBJECTIVE OF CVP ANALYSIS CVP analysis looks primarily at the effects of differing levels of activity on the financial results of a business. The reason for the particular focus on sales volume is because, in the short-run, sales price, ...
The capital asset pricing model (CAPM) equation quoted in the formula sheet is: E(ri) = Rf + ßi(E(rm)– Rf) Where: E(ri) = the return from the investment Rf = the risk free rate of return ßi = the beta value of the investment, a measure of the syst...
In multi-product situations, a weighted average C/S ratio is calculated by using the formula: Total contribution/total sales revenue This weighted average C/S ratio can then be used to find CVP information such as break-even point, margin of safety, etc. Example 2 ...
Cost of Goods Sold is also known as “cost of sales” or its acronym “COGS.” COGS refers to the direct costs of goods manufactured or purchased by a business and sold to consumers or other businesses. COGS counts as a business expense and affects how much profit a company makes on its...
Also, the totalsales price of CU 159 600 is here only to trick you. It is NOT relevant for calculating the value of inventories in the warehouse – it’s a sales price, not a cost. Regardless cost formula used, we can calculate the number of units of Amazing Chocobar in the warehouse...
individual CS ratios, weighting by the budgeted sales revenues”. Apparently there seems to be contradiction in these two. Can you help me understand that please. Log in to Reply
1. found total Total variable cost= 8.40 +3.60+ 1.44= 13.44 2. contribution for x , which is sales less total variable cost = 24-13.44 = 10.56 3.found budgeted fixed cost for both x and y = (2.88×10,000) +(2.4 x 12500) = 58800 ...
Put these amounts into the formula and you have an estimate of the cost of equity. However, the model gives no explanation as to why different shares have different costs of equity. Why might one share have a cost of equity of 15% and another of...
The formula is extremely useful as it allows us to predict the beta, and hence the cost of equity, for any level of gearing. Once you have the cost of equity, it is a straightforward process to calculate the WACC and hence discount the project. To illustrate the use...
In multi-product situations, a weighted average C/S ratio is calculated by using the formula: Total contribution/total sales revenue This weighted average C/S ratio can then be used to find CVP information such as break-even point, margin of safety, etc. Example 2 ...