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  • MCA Formula

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    KS
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    This document outlines key formulas used in managerial cost accounting, including formulas to calculate variable cost per unit, contribution margin, variable cost ratio, contribution margin percentage, break-even point in units and value, margin of safety, margin of safety ratio, and target sales needed to achieve a targeted profit level. It also defines operating leverage as the ratio of contribution to profit.

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    Accounting formulae

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    This document outlines key formulas used in managerial cost accounting, including formulas to calculate variable cost per unit, contribution margin, variable cost ratio, contribution margin percentage, break-even point in units and value, margin of safety, margin of safety ratio, and target sales needed to achieve a targeted profit level. It also defines operating leverage as the ratio of contribution to profit.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    MCA Formula

    Uploaded by

    KS
    This document outlines key formulas used in managerial cost accounting, including formulas to calculate variable cost per unit, contribution margin, variable cost ratio, contribution margin percentage, break-even point in units and value, margin of safety, margin of safety ratio, and target sales needed to achieve a targeted profit level. It also defines operating leverage as the ratio of contribution to profit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    MCA FORMULA

    Actual Sale Units Total Sale Value/ Selling Price


    VC Per Unit Change in Total Cost/Change in Units
    VC Margin 1-Contribution Margin
    VC Ratio (VC/Sales)*100
    Contribution Margin (Contribution/Sale Value)*100 Change in Profit/Change in Sale Units
    CPU Change in Contributiion/Change in Sale Unit Change in Profit/Change in Sale Units
    BEP in Units FC/CPU
    BEP in Value FC/Contribution Margin
    Total Sales MoS+BEP
    MoS Profit/CPU (or) /CM Total Sales-BEP
    MoS Ratio (MoS/Sales)*100
    Target Sale Units for Targeted Profit (FC+Targeted Profit)/CPU
    Target Sale Value for Targeted Profit (FC+Targeted Profit)/Contribution Margin
    Operating Leverage Contribution/Profit
    Sales - Variable Cost = Contribution ; Contribution-Fixed Cost = Profit

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