All

Question 1

Expected value of a decision with two outcomes

Answer 1

(Pay off of A X probability of A)

+

(Pay off of B X probability of B)

Question 2

Inventory turnover

Answer 2

Cost of sales / av inventories held

Question 3

Labour productivity

Answer 3

Output over time period/ number of employees

Question 4

Profit for the year

Answer 4

Operating profit + profit from other activities - net finance costs - tax

Question 5

Market growth %

Answer 5

Change in size of the market/original size of market

X100

Question 6

Market capitalisation

Answer 6

Number of shares issued X current share price

Question 7

Operating profit

Answer 7

Gross profit - operating expenses

Question 8

Profit for the year margin

Answer 8

Profit for the year / revenue

X100

Question 9

Receivable days

Answer 9

Receivables / revenue

X365

Question 10

Contribution pre unit

Answer 10

Selling price - variable cost per unit

Question 11

Labour turnover

Answer 11

Number of staff leaving / number of staff employed

X100

Question 12

Market share %

Answer 12

Sales of one product or business/total sales in the market

X100

Question 13

Capacity utilisation

Answer 13

Actual output / max possible output

X 100

Question 14

Variance

Answer 14

Budgeted figure - actual figure

Question 15

Current ratio

Answer 15

Current assets / current liabilities

Question 16

Margin of safety

Answer 16

Actual level of output - break even level of output

Question 17

Total Variable costs

Answer 17

Variable cost per unit X number of units sold

Question 18

Gearing

Answer 18

Non current liabilities / capital employed

X100

Question 19

Operating profit margin

Answer 19

Operating profit / revenue

X100

Question 20

Revenue

Answer 20

Selling price X number of units sold

Question 21

Break even output

Answer 21

Fixed costs / contribution per unit

Question 22

Gross profit

Answer 22

Revenue - costs of sale

Question 23

Return on capital employed

Answer 23

Operating profit / capital employed

X100

Question 24

Total contribution (2 ways)

Answer 24

Contribution per unit X units sold

Or

Total revenue - total variable costs

Question 25

Total costs

Answer 25

Fixed costs + variable costs

Question 26

Employee retention rate

Answer 26

Number of employees who remained for the whole period / number of employees at the start of the period X100

Question 27

Capital employed

Answer 27

Total equity + non current liabilities

Question 28

Labour cost per unit

Answer 28

Labour costs / units of output

Question 29

Payable days

Answer 29

Payables / cost of sales X365

Question 30

Added value

Answer 30

Sales revenue - costs of brought in goods and services

Question 31

Net gain

Answer 31

Expected value - initial cost of decision

Question 32

Return on investment

Answer 32

Profit from investment / cost of investment X100

Question 33

Profit

Answer 33

Total revenue - total costs

Question 34

Average rate of return

Answer 34

Average annual return / initial cost of project X100

Question 35

Gross profit margin

Answer 35

Gross profit / revenue X100

Question 36

Employee costs as percentage of turnover

Answer 36

Employee costs / turnover X100

Question 37

Unit costs (average costs)

Answer 37

Total costs / number of units of output