FINANCIAL AND MANAGEMENT ACCOUNTING

KEYS TO ASSIGNMENT – SET 2

1. Stock Velocity = Net Sales / Avg Inventory

Capital Turnover ratio= Sales/ capital employed
Fixed asset Turnover ratio = Cost of goods sold/ Total Fixed asset
Debt collection Period = Month or Days in a year / Debtors Turnover
2. Refer Unit 2
3. Refer Unit 12.6
4. Refer Unit 14
5. Selling price per unit – variable cost per unit = contribution per unit
BEP in units = Fixed expenses/ contribution per unit
Margin of Safety = Profit/ MCSR where
MCSR =( Change in profit/ change in sales) x 100
6. MCV, MPV and MUV – Refer Unit 15.7