BEC Formula Sheet

http://www.cpa-cfa.org

Two ways to measure GDP

1.

2.

Two ways to measure price elasticity

1.

2.

Cross elasticity =

Two methods to measure translation risk

1.

2.

FX economic exposure chart

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 BEC Formula Sheet
http://www.cpa-cfa.org

= net cash outflow for new PPE

Depreciation tax shield =

= Net Present Value (NPV)

Payback period =

How to calculate the IRR

Profitability index =

PV of asset =

Effective interest rate =

Simple interest =

Compound interest =

DOL x DFL = DCL

2
 BEC Formula Sheet
http://www.cpa-cfa.org

WACC =

CAPM =

DCF Cost of Equity =

Cost of Debt =

Cost of preferred stock =

ROI = or

ROA = or

Required return =

Residual income =

Annual cost of payment discount =

Current Carrying Costs =

Stock out costs =

Inventory carrying costs =

Re-order point =

Inventory turnover =

Cost savings =

EOQ =

Factoring Table/equation

3
 BEC Formula Sheet
http://www.cpa-cfa.org

Prime Costs ( )=

Conversion Costs =

Product Costs =

Period Costs =

Joint Product Cost allocation

1.

2.

3.

______________________
Materials available for use

______________________
Materials used

_____________________
COGM

Overhead rate =
4
 BEC Formula Sheet
http://www.cpa-cfa.org

Overhead application =

Equivalent units
Weighted Avg
Equivalent units =

Weighted avg =

FIFO
Equivalent units =

FIFO =

Variable costing (Not GAAP)

__________________________
NI

Absorption costing (GAAP)

__________________________
NI

Net Effect between variable costing and absorption costing

Fixed cost per unit =

Change in NI =

Increase in Inventory:

Decrease in Inventory:

Contribution margin ratio =

B/E in units =
5
 BEC Formula Sheet
http://www.cpa-cfa.org

B/E in dollars =

Required sales volume for target profit

Target profit before tax =

Required sales =

Margin of safety =

Margin of safety % =

EVA
Required return =

EVA =

Variance Analysis:

Standard Quantity Allowed =

Production Volume Variance =

Selling price variance =

Sales volume variance =

Sales mix variance =

Sales quantity variance =

Market size variance =

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 BEC Formula Sheet
http://www.cpa-cfa.org

Market share variance =