Formula1 - ACCY 302(Chen Fall 2008 Formula Sheet for ACCY...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY 302 (Chen) Fall 2008 Formula Sheet for ACCY 302 Note: This formula sheet summarizes the formulas you should know for the final exam. The sole purpose is to help you prepare for the final exam. (Please do not bring it to the final exam though). This formula sheet only covers formulas that fall under major topics after the midterm exam and is not intended to be exhaustive. Relevance (including CVP analysis): Two ways to prepare income statements: 1) Absorption costing; and 2) Variable costing. Both are based on the fundamental accounting equation: Revenues – Expenses = Income Absorption Costing (used for external financial reporting): gross margin (a.k.a., gross profit) = revenue - cost of goods sold cost of goods sold (COGS) = all manufacturing costs (regardless of behavior) gross margin percentage = gross margin / revenue operating income = revenue - COGS - SG&A where SG&A = variable and fixed selling, general, & administrative expenses Variable Costing (a.k.a. contribution approach; used for CVP analysis and in decision- making):
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern