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ACCA PM Formulas with 100% correct answers

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OAR correct answersoverhead / activity ABC costing (activity-based) correct answersCost pool/ cost driver target costing correct answersTarget selling price - target profit Cost gap correct answersEstimated product cost - target cost Throughput correct answersSales revenue - material co...

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  • September 13, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • ACCA PM Formulas
  • ACCA PM Formulas
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ACCA PM Formulas

OAR correct answersoverhead / activity



ABC costing (activity-based) correct answersCost pool/ cost driver



target costing correct answersTarget selling price - target profit



Cost gap correct answersEstimated product cost - target cost



Throughput correct answersSales revenue - material cost



total factory cost correct answersFixed production costs, including labour



Return per factory hour correct answersSales revenue - material purchases (VC) / time on key resources
(bottleneck hours)



Cost per factory hour correct answersTotal factory costs / time in key resources (bottleneck hours)



TPA ratio correct answersReturn per factory hour / cost per hour >1, higher the better



break-even point (BEP) correct answersFixed cost / unit contribution



Contribution To Sales Ratio (c/s) correct answersContribution per unit / selling price per unit



Break even revenue correct answersFixed costs / C/S ratio



Break even revenue correct answersBreak even point x selling price per unit

, Margin of safety correct answersBudgeted sales - break even sales



Margin of safety % correct answers(budgeted sales - breakeven sales) / budgeted sales



Output required for target profit correct answersFixed costs + target profit / unit contribution



Multi Product Break Even Point correct answersFixed costs / weighted average unit contribution



Multi product break even revenue correct answersFixed costs / weight average C/S ratio



Multi product break even revenue correct answersBreakeven point x selling price per unit



price elasticity of demand (PED) correct answers%change in demand (Q) / % change in price (P)



Demand Function correct answersP = a-bq



P = selling price

Q = quantity demanded at that price

a = theoretical maximum price (if set price is a or above,0)

b = change in price / change in quantity



High-Low Method steps correct answers1. Select highest & lowest activity and associated cost

2. Calculate VC per unit = Highest cost - lowest cost / highest activity - lowest activity

3. Take highest cost - VC per unit x highest activity to get FC



Total cost function correct answersY = a+bx



Y = dependent variable (total cost)

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