Summary CPA Australia Foundation Management Accounting FORMULA CHEAT SHEET
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Course
CPA Australia
Institution
CPA Australia
Being a closed-book exam for the CPA Australia papers, Management Accounting can be a tough subject with lots of concepts to be understood which can be confusing. This is FORMULA CHEAT SHEET curated by me and took MANY HOURS which helped me aced all the calculation questions!
Wishing you all the b...
Module 2
Deprival value The amount of money that a company would have to receive if it were deprived of the asset
in order to be no worse off than it already is.
The LOWER of :
Replacement cost and the HIGHER of NRV and Revenues expected
High - low method
Variable cost per Variable cost per unit
unit = (Total cost at high activity level - Total cost at low activity level) /(Total units at high
activity level - Total units at low activity level)
Fixed costs Fixed costs
= Total cost - Variable cost
= Total cost at high activity level - (Total units at high activity level x Variable cost per unit)
,Module 3
Prime cost Prime cost
= Total of all direct costs
= Direct materials + Direct labour + Direct expenses
Overheads Overheads
= Indirect material + Indirect labour + Indirec expenses
Total Total manufacturing cost
manufacturing = Prime cost + Manufacturing overheads
cost = Direct materials + Direct labour + Direct expenses + Indirect material + Indirect labour +
Indirec expenses
Cost driver rate Cost driver rate
= Total cost in the cost pool/Number of cost drivers
OR
Cost driver rate
= Estimated production overheads relating to cost driver/Estimated total cost driver activity
required
Total cost in the Total cost in the cost pool
cost pool = Cost driver rate x Activity level
, Dealing with losses
Total cost of Total cost of output and losses
output and losses = Cost of output + Normal loss* +/- Abnormal loss/gain
*Normal loss is valued at 0 or disposal value
Cost of output Cost of output
= Actual output units x Cost per unit of output
Cost per unit of Cost per unit of output
output = Costs incurred/Expected output
Costs incurred Costs incurred
= Input cost - Normal loss*
*Normal loss is valued at 0 or disposal value
Input cost Input cost
= Direct materials cost + Direct labour costs + Production overheads
Expected output Expected output
= Input units - Normal loss
OR
Expected output
= Input units - Total loss
Normal loss Normal loss
= % x Input units
Abnormal Abnormal loss/gain
loss/gain = Expected output - Actual output
Abnormal loss Abnormal loss
= Actual loss - Normal loss
= Total loss - Normal loss
Total cost of Total cost for output and losses
output and losses = Cost of output + Scrap value of normal loss +/- Abnormal loss/gain
(scrap value)
Total cost of Total cost of output and WIP
output and WIP = Cost of completed units + Cost of closing inventory +/- Abnormal loss/gains
Cost of completed Cost of completed units
units = Completed units x Cost per completed unit
Completed units Completed units
= Input units - Closing inventory
Cost of closing Cost of closing inventory
inventory = Closing inventory x Cost per completed unit
Cost per Cost per completed unit
completed unit = Total cost of production/Equivalent units of work done
Equivalent units of Equivalent units of work done
work done = Completed units + Closing inventory + Normal loss* +/- Abnormal loss/gain
*Normal loss is valued at 0 or disposal value
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