Flashcards in Book 1 Deck (46):

1

## How do you calculate Total Revenue?

### Price per unit X Quantity of units sold.

2

## How do you calculate Total Costs?

### Fixed costs + Variable costs

3

## How do you calculate profit?

### Total revenue - Total Costs

4

## How do you calculate market capitalisation?

### Total outstanding shares X current market price of an individual share

5

##
How do you calculate the expected value

Decision trees

### Value of the outcome X profitability

6

##
How to calculate net gain

Decision trees

###
Both expected values added together = Total expected value TEV

TEV - Cost =net gain

7

## How to calculate sales value

### Volume X average price

8

## What is the formula for market growth as a %?

###
Market size in year - market size in previous year

------------------------------ market size in previous year

X 100

9

## Formula for sales growth

###
Sales in that year - sales in previous year

--------------------------sales in previous year

X 100

10

## Formula for market share

###
Sales of one product, brand or company

-------------------------

Total sales in the market

X 100

11

## Formula for price elasticity of demand

###
% change in quantity demanded

-------------------------

% change in price

12

## Formula for income elasticity of demand

###
% change in quantity demanded

-----------------------

% change in income

13

## Formula for % change in quantity demanded

###
Change in quantity demanded

--------------------------

Original quantity demanded

X 100

14

##
Formula for % change in price

###
Change in price

-----------------

Original price

X 100

15

## What is the formula for unit costs?

###
Total costs

--------------------

Units of output

16

## How to calculate punctuality

###
Deliveries on time

--------------------

Total deliveries

X 100

17

##
Formula for added value

### Sales revenue - cost of bought-in materials, components and services

18

## How is labour productivity calculated?

###
Output per period

-------------------------

Number of employees per period

19

## How to calculate capacity utilisation?

###
Actual output per annum

(Month)

--------------------------

Maximum possible output per annum (month)

X 100

20

## Formula for Return on investment as a %

###
Financial gains from the investment - costs of the investment

---------------------------

Cost of the investment

X 100

21

## What is the calculation for Return on investment?

### Financial gains from the investment - Costs of the investment

22

## Formula for debts as a proportion of long term funding

###
Debts

---------------------

Long term funding

X 100

23

## Formula for gross profit

### Revenue - cost of sales

24

##
Calculation for Operation profit

### Gross profit (revenue-cost of sales) - administrative expenses

25

## What is the formula for Profit for the year

### Operating costs - net finance - taxation

26

## Calculate profit budget

### Income - expenditure

27

## How do you calculate variance

### Budget figure - actual figure

28

## How to calculate net cash flow

### Cash inflows - cash outflows

29

## Formula for closing cash balance

### Opening cash balance + net cash flow

30

## Calculate net monthly balance

### Total inflows - total outflows

31

## Calculate closing balance

### Opening balance + net monthly balance

32

## Formula for the length of working capital cycle

### Length of time that goods are held as inventories + time taken for receivables to be paid - period of credit received from suppliers (payables)

33

## What two ways can the total contribution of a product be calculated?

###
Contribution per unit X number of units sold

Sales revenue - total variable costs

34

## Formula for weekly profit

### Total contribution - fixed costs

35

## How to calculate total contribution

### Contribution per unit X number of units sold

36

## Calculation for contribution per unit

### Selling price - variable costs

37

## Formula for break even output

###
Fixed costs

--------------------------

Contribution per unit

38

## Formula for target profit output

###
Fixed costs + target profit

--------------------------

Contribution per unit

39

## How do yo calculate Gross profit margin (%)

###
Gross profit

--------------------------

Sales revenue (turnover)

X100

40

##
Formula for operating profit margin (%)

###
Operations profit

--------------------------

Sales revenue (turnover)

X100

41

## What is the formula for the profit of the year margin (%)

###
Profit for year

--------------------------

Sales revenue (turnover)

X100

42

## Calculate labour turnover

###
Number of employees leaving over a given period of time

-------------------------------------

Average number employed over a given period

X100

43

##
Calculate retention rates

###
Number of employees with one or more years service

---------------------------------------

Overall workforce numbers

X100

44

## Formula for labour productivity

###
Output per period

--------------------------

Number of employees per period

45

## How is labour costs per unit calculated ?

###
Total labour costs

-----------------------

Total units of output

46