University:
Acadia University
Course:
BUSI 2013 | Managerial Accounting
Academic year:

2024
Views:

194

Pages:

10
Author:

Abegail C.

**FORMULAS** **Product Life Cycle Management** * Life Cycle Cost = Development Cost + Production Cost + Logistics Cost * Whole Life Cost = Life Cycle Cost + Postpurchase Cost * Life Cycle Profit = Life Cycle Revenue - Life Cycle Cost * Pricing Products & Services * Selling Price = Cost + Markup * Profit Maximizing Price = Variable Cost X (1 + Mark-up) * Price Elasticity of Demand = In(1+ % change in demand) / In(1+ % change in Price) * Time & Material = Hourly Labor cost + Hourly overhead cost + Mark-up * Material Charges = Material Cost + Handling & Storage Cost + Mark-up * Handling & Storage Cost = Material Cost x (Handling & Storage Cost / Material Cost) * Special Order Pricing = Variable Cost + Opportunity Cost **Product Bundling** * Weights based on SP, Unit Cost, or Physical Quantities * Stand-alone * Sequential / Step Down * Shapley Value = Average | Weighted Average | Incremental **Product Mix** * Linear Programming - Decision Variables, Objective Function, Constraints * Contribution Margin per Input Unit - Contribution Margin / Input per Unit **Profit-Related Variances** * Sales Volume Variance = (Actual Total CM - Budgeted Total CM) * Sales Mix Variance = (Actual Mix - Budgeted Mix) x Actual Total Volume x Budgeted Unit CM * Sales Quantity Variance = (Actual Volume - Budgeted Volume) x Budgeted Unit CM * Market Share Variance = (Actual Market Share - Budgeted Market Share) x Actual Industry Sales x Budgeted Unit CM * Market Size Variance = (Actual Industry Sales - Budgeted Industry Sales) x Budgeted Market Share x Budgeted Unit CM