International Business Administration SIB500 Study Guide - Final Guide: Contribution Margin, Earnings Before Interest And Taxes, Asset Turnover

• School: Seneca College
• Department: International Business Administration
• Course: International Business Administration SIB500
• Professor: andreachance

Document Summary

Department overhead rate = manufacturing overhead / machine hours. Total costs = f + xv (f = total fixed costs, x = volume of activity, v = variable cost per unit of activity) Prime costs = direct materials + direct labour. Conversion costs = manufacturing overhead + direct labour. Predetermined moh rate = total estimated manufacturing overhead costs / total estimated amount of the allocation base. Cost of goods sold = number of units * manufacturing cost per unit. Total mixed costs (y) = variable costs (vx) + fixed cost (f) Operating leverage factor = contribution margin / operating income. Unit contribution margin = sales price per unit variable cost per unit. Operating income = sales revenue * contribution margin ratio fixed costs ---or--- cm fixed expenses. Contribution margin ratio = contribution margin / sales revenue. Direct materials price variance: (ap-sp)*aq or total ap total sp. Roi (%) = operating income / total assets ---or--- profit margin * asset turnover.