BEC Formula Sheet http://www.cpa-cfa.

org

Two ways to measure GDP 1.

2.

Two ways to measure price elasticity 1.

2.

Cross elasticity = Two methods to measure translation risk 1.

2.

FX economic exposure chart

1

BEC Formula Sheet http://www.cpa-cfa.org

= net cash outflow for new PPE

Depreciation tax shield =

= Net Present Value (NPV)

Payback period =

How to calculate the IRR

Profitability index =

PV of asset = Effective interest rate = Simple interest = Compound interest = DOL x DFL = DCL

2

BEC Formula Sheet http://www.cpa-cfa.org

WACC = CAPM = DCF Cost of Equity = Cost of Debt =

Cost of preferred stock =

ROI = ROA = Required return = Residual income =

or or

Annual cost of payment discount =

Current Carrying Costs = Stock out costs = Inventory carrying costs = Re-order point = Inventory turnover = Cost savings = EOQ = Factoring Table/equation

3

BEC Formula Sheet http://www.cpa-cfa.org

Prime Costs ( Conversion Costs = Product Costs = Period Costs = Joint Product Cost allocation 1.

)=

2.

3.

*

______________________ Materials available for use ______________________ Materials used

_____________________ COGM

Overhead rate = 4

BEC Formula Sheet http://www.cpa-cfa.org

Overhead application = Equivalent units Weighted Avg Equivalent units = Weighted avg = FIFO Equivalent units =

FIFO = Variable costing (Not GAAP)

__________________________ NI Absorption costing (GAAP)

__________________________ NI Net Effect between variable costing and absorption costing Fixed cost per unit = Change in NI = Increase in Inventory: Decrease in Inventory:

Contribution margin ratio = B/E in units = 5

BEC Formula Sheet http://www.cpa-cfa.org

B/E in dollars =

Required sales volume for target profit Target profit before tax = Required sales = Margin of safety = Margin of safety % = EVA Required return = EVA = Variance Analysis:

Standard Quantity Allowed = Production Volume Variance =

Selling price variance = Sales volume variance = Sales mix variance = Sales quantity variance = Market size variance = 6

BEC Formula Sheet http://www.cpa-cfa.org

Market share variance =

7