Managerial Accounting Equations

project is unacceptable

project is acceptable

PV of future cash flows / initial investment

net income + depreciation

PV of future cash flow -- original investment

initial investment / annual cash flow

net income / investment

beginning raw materials + raw material purchases -- indirect materials issued -- ending raw materials

direct materials used + direct labor + manufacturing overhead

total current manufacturing costs + beginning WIP -- cost of goods manufactured

total current manufacturing costs + beginning WIP - ending WIP

cost of goods manufactured + beginning finished goods -- ending finished goods

direct materials used + ending raw materials + indirect materials issued -- raw materials purchases

total current manufacturing costs - manufacturing overhead - direct materials used

cost of goods sold + ending finished goods -- cost of goods manufactured

beginning raw materials + raw material purchases - indirect materials issued -- direct materials used

cost of goods manufactured + ending WIP -- total current manufacturing costs

cost of goods manufactured + beginning finished goods -- cost of goods sold

direct materials used + ending raw materials + indirect materials issued -- beginning raw materials