Accounting Equations
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Last updated 7:19 PM on 3/26/26
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14 Terms
1
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Margin
NOI / Sales
2
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Turnover
Sales / Average Operating Assets
3
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ROI
(NOI / Sales) x (Sales / Average Operating Assets)
4
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Residual Income
NOI (Average Operating Assets x Minimum Required Rate of Return)
5
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Price Variance
(AQ x SP) - (AQ x AP)
6
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Quality Variance
(SQ x SP) - (AQ x SP)
7
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Labor Rate Variance
(AH x SR) - (AH x AR)
8
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Labor Efficiency Variance
(SH x SR) - (AH x SR)
9
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Spending Variance
(SH x SR) - (AH x AR)
10
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VOH Rate Variance
(AH x SR) - (AH x AR)
11
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VOH Efficiency Variance
(SH x SR) - (AH x SR)
12
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Spending Variance
(SH x SR) - (AH x AR)
13
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Spending Variances are always…
Standard x Standard - Actual x Actual
14
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