Formulas for Return of Securities

To compute the Holding period return, holding period yield, expected rate of return, annual HPR, arithmatic mean, geometric mean, standard deviation for historical returns as well as future returns we have extracted some formulas from Reilly/Brown's "Investment Analysis and Portfolio Management". These formulas are as follows -

Reconciliation of Variable and Absorption costing

You might have idea about prepartion of income statement under Variable costing and Absorption costing. If you are seeking the format for reconciliation of the net operating income under variable and absorption costing then you should have a look at below image -

Income Statement Under Variable Costing

I think you have passed the process of Unit Product Cost calculation. Therefore if you are keen to know about variable costing approach to prepare income statement then you should look at the image below -

Income Statement Under Absorption Costing

If you know How to compute Unit product cost? Then you should be looking for the format of calculating Income statement under Absorption Costing approach. Therefore you can look at the below image to have the format of the Income statement under Absorption costing method -

Format for computing Unit Product Cost

If you are looking for the format of computing Unit Product Cost of any product then you can have a look at the following format where we have arranged the format for both Variable costing method and Absorption costing method -