# Ch 3: Formulas for Cost Accounting

Review this chapter as you go over the formulas for cost accounting. Whenever you use our learning materials, you can always assess your progress by taking the time to answer our lesson quizzes, which can determine your understanding of key terms, problem-solving, concept applications, and more.

## Formulas for Cost Accounting - Chapter Summary

In order to account for different costs, you must understand the formulas used to determine those costs. This chapter provides an extensive overview of some of the most commonly used cost accounting formulas. Since there are a wide range of essential formulas, our instructors have carefully separated the chapter into individual lessons. Each lesson goes over a single formula, its purpose, and the related calculation steps. Since the lessons are clearly labeled, you can use the chapter menu to look up information on a specific formula that you need to understand for a homework assignment or for an upcoming exam. By the close of the chapter, you should be able to:

• Describe the break even point formula
• Identify the formula used to determine target net income
• Analyze the steps for calculating gross profit margin
• Define the contribution margin and its purpose
• Examine the variance formulas used in cost accounting
• Compare beginning inventory and ending inventory formulas

7 Lessons in Chapter 3: Formulas for Cost Accounting
Test your knowledge with a 30-question chapter practice test
Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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