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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

Formula for the employee costs as a percentage of turnover

Employee costs
------------------
Sales turnover

X100