2.4 Flashcards
revenue
selling price x number of units sold
total variable costs
variable cost per unit x number of units sold
total costs
fixed costs + variable costs
profit
revenue - total costs
interest on loans (in %)
(total repayment - borrowed amount) / borrowed amount x 100
break even (units)
fixed costs / (selling price - variable cost per unit)
break even (revenue)
break even (units) x sales price
margin of safety
actual or budgeted sales (or output) - break even sales
net cash flow
total cash inflows (receipts) - cash outflows (total payments)
opening balance
closing balance of the previous period
closing balance
opening balance + net cash flow
lead time
delivery date - date stock re-ordered
gross profit
sales revenue - cost of sales
gross profit margin (%)
(gross profit / revenue) x 100
net profit
gross profit - other operating expenses and interest
net profit margin (%)
( net profit / revenue ) x 100
average rate of return (ARR) (%)
(average annual profit / cost of investment ) x 100
average annual profit
total profit / number of years