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Business > Business formulae and key data > Flashcards

Business formulae and key data Flashcards

1
Q

Total costs

A

Fixed costs+ variable costs

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2
Q

Profit

A

Total Revenue- total costs OR Total contribution- Fixed costs

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3
Q

Total revenue (Sales revenue or Turnover

A

Selling price per unit x Number of unties sold

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4
Q

Market capitalisation of A BUSINESS

A

Number of issued shares x current share price

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5
Q

Expected value of a decision with two possible outcomes - A & B

A

[pay-off A x probability of A]+[pay-off A x probability of B]

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6
Q

In a decision tree net gain=

A

Expected value- initial cost

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7
Q

Market size is

A

The quantity of goods and services produced in a particular market over a period of time

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8
Q

Market size value is

A

The total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time

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9
Q

Sales volume is

A

The quantity of goods and services produced by a particular business over a period of time

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10
Q

Sales value is

A

TH total sales revenue of a particular business over a period of time

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11
Q

Market Growth % in a year=

A

Change in the size of the market between year (x-1)/ Size of the market in year (x-1) x100

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12
Q

Variable cost=

A

Variable costs per unit X Number of units sold

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13
Q

Sales growth (%) in year X

A

Change in sales of product or business between year (x-1) and year X/ Sales of product or business in year (X-1) X 100

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14
Q

Market share %

A

Sales of one product OR brand Or business/ total sales in the market X 100

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15
Q

Price elasticity of demand

A

Percentage change in quantity demand/ percentage change in price

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16
Q

Added value

A

Sales revenue- cost of bought-in goods and services

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17
Q

Labour productivity

A

Output per time period/ number of employees

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18
Q

Unit cost (av cost)

A

Total cost of production/ Number of unfits output per period

19
Q

Capacity utilisation (%)

A

Actual output in a given time period/max possible output in a given time period X100

20
Q

Return on investment (%)

A

Return on investment(£)/ Cost of the investmentX100

21
Q

Gross profit

A

Sales rev- Cost of sales

22
Q

Profit from operations=Operating profit-

A

Sales revenue- cost of sales- Operating profit

23
Q

Profit for the year=

A

Operating profit+ profit from other activities- Net finance costs- Tax

24
Q

Variance

A

The difference between an actual and a budgeted figure. Favourable variance results in profit being higher than expected and Adverse variance results in profits being lower than forcasted

25
Q

Contribution per unit

A

Selling price- Variable cost per unit

26
Q

Total contribution

A

Contribution per unit x Units produced or sold OR Total revenue- total variable costs

27
Q

Break even output

A

Fixed costs/ Contribution per unit

28
Q

On a break even chart where is the level of profit

A

The level of profit at a given level of output is the vertical distance between the total revenue line and the total cost line.

29
Q

On a break-even chart where is the break even point

A

The break-even output is the level of output at which total revenue equals total costs

30
Q

Margin of safety

A

Actual level of output- break even level of output

31
Q

Gross profit margin (%)

A

Gross profit/Sales revenue X100

32
Q

Profit form operations margin= operating profit margin (%)

A

Operating profit/ sales revenue x100

33
Q

Labour turnover (%)

A

Numbe roflcopters staff leaving during the year / Average number of staff employed by the business during the year X100

34
Q

Profit for the year margin (%)

A

Profit for year/ sales revenueX100

35
Q

Employee retention rate (%) for a particular time period

A

Number of employees at end of period- number of leavers/ number of employees at end of period X100

36
Q

Labour cost per unit

A

Labour costs/ units of output

37
Q

Employee costs as a percentage of turnover

A

Employee costs/ sales turnover X 100

38
Q

ROCE (%)

A

Operating profit/ Total equity+ non-current liabilities X100

Where total equity+ non-current liabilities= capital employed

39
Q

Current ratio

A

Current Assets/ Current liabilities

40
Q

Gering (%)

A

Non-current liabilities/ Total equity + non-current liabilities X100

41
Q

Payables days

A

Payables/cost of sales X365

42
Q

Receivables days

A

Receivables/sales revenue X365

43
Q

Inventory turnover

A

Cost of goods sold/ Average inventories held

44
Q

Average rate of return (%)

A

Net return from project (£) or number of years/ Initial cost of the project (£) X 100

Business (1 decks)

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