Retail Accounting Terms, Acronyms, and Formulas Cheat Sheet (copy)

Learn about:

• Accounting Terms

• Common Retail Accounting Acronyms

• Common Retail Accounting Formulas

Financial accounting in the retail world involves a host of terms, confusing acronyms, and definitions that are similar to and different from their universal meanings.

This article breaks down some of the most common accounting terms in the retail space, including their acronyms (when relevant), the term itself, and their definitions/formulas.

This list is organized alphabetically by term. Use this list as a reference or guide for day-to-day work or as a training tool.

Acronym	Term	Definition/Equation
AMT	Amortization	In accounting, amortization is a way of calculating the gradations of the cost of an intangible asset over its useful life. <br> <br><br> M = Monthly payment <br> P = Principal loan amount (initial loan balance) <br> r = Monthly interest rate (annual interest rate divided by 12 months) <br> n = Total number of payments (loan term in years multiplied by 12 months)
BEP	Break-Even Point	The break-even point is the point when the expenditures and revenue for any given business process balance out. <br> <br><br> Fixed Costs: Costs that do not change with the level of output (e.g., rent, salaries). <br> Selling Price per Unit: The price at which each unit is sold. <br> Variable Cost per Unit: Costs that vary directly with the level of output (e.g., materials, labor).