Business Formula T2

Question 1

TVC

Answer 1

Number of units sold x VCPU

Question 2

TFC

Answer 2

Total cost - TVC

Question 3

Unit cost

Answer 3

Total cost / output

Question 4

Break even point

Answer 4

Fixed costs / CPU

Question 5

Contribution per unit

Answer 5

Selling price PU - VCPU

Question 6

Total contribution

Answer 6

CPU x Number of units sold

Question 7

Profit

Answer 7

Total contribution - Fixed costs

Question 8

Margin of safety

Answer 8

Actual output - break-even output

Question 9

Profit

Answer 9

Margin of safety x CPU

Question 10

Variance

Answer 10

Budget - Actual figure

Question 11

Net Cash Flow

Answer 11

Total inflows - Total outflows

Question 12

Closing balance

Answer 12

Opening balance + Net cash flow

Question 13

Gross Profit

Answer 13

Sales rev - Cost of sales

Question 14

Cost of sales

Answer 14

Sales rev - gross profit

Question 15

Operating profit

Answer 15

Gross profit - expenses

Question 16

Net profit

Answer 16

Operating profit. +/- finance costs

Question 17

GP and OP and NP

Answer 17

Each one / sales rev x100

Question 18

Current ratio

Answer 18

Current assets / current liabilities: 1

Question 19

Acid test ratio

Answer 19

(Current assets - stock) / current liabilities : 1

Question 20

Working capital

Answer 20

Currents assets - current liabilities

Question 21

Productivity

Answer 21

Output per period (units) / No employees

Question 22

Capacity utilisation

Answer 22

( Actual level of output / Maximum possible output) x100