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Flashcards in Business Definitions Deck (21):
1

Acid test ratio

CA - stock : CL

2

Adverse variance

Budget figure - actual figure

3

Break even analysis

Total costs = total revenue

4

Break even point

Fixed costs / contribution

5

Capacity utilisisation

Actual output / maximum output x 100

6

Contribution

Selling price - variable cost

7

Current ratio

Current assets : current liabilities

8

Favourable variance

Budget figure - actual figure

9

Gross profit

Sales revenue - cost of sales

10

Gross profit margin

GP / sales x100

11

Margin of safety

Actual output - break even output

12

Market size

Number of units sold x price

13

Operating profit

Gross profit - expenses

14

Operating profit margin

Operating profit / revenue x 100

15

Profit

Total revenue - total cost

16

Profit for the year

Operating profit - interest & tax

17

Profit for the year margin

Profit for the year / sales revenue x100

18

Sales revenue

Selling price x quantity sold

19

Total cost

Fixed costs + variable costs

20

Total revenue

Selling price x quantity sold

21

Variance analysis

Budgeted figure - actual figure