Business Formulas Flashcards
(37 cards)
Total costs
Fixed costs + variable costs
Profit
Total revenue - total costs
Total variable costs
Variable cost per unit x number of units sold
Total revenue
Selling price x units sold
Market capitalisation
Number of issues shared x current share price
Expected value
Probability of A x possible outcome of A
+
Probability of B x possible outcome of B
Net gain (decision tree)
Expected value - cost of decision
Market size (volume)
Quantity of goods and services produced in a particular market over a period of time (usually a year)
Market size (value)
Total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time (usually a year
Sales volume
The quantity of goods and services produced by a particular business over a period of time (usually a year)
Sales value
The total sales revenue of a particular business over a period of time (usually a year)
Market growth (%) in year ‘X’
Change in sales of the market between year (x-1) and year x
/
Size of the market in year (x-1)
X 100
Sales (%) in year ‘x’
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
Market share (%)
Sales of one product or brand or business
/
Total sales in the market
X 100
Added value
Sales revenue - costs of bought in goods and services
Labour productivity
Output per time period
/
No of employees
Unit costs (average costs)
Total costs of production
/
No of units of output produced
Capacity utilisation
Actual output in time period
/
Max possible output in time period
X 100
Return on investment (%)
Return on investment
/
Cost of investment
X 100
Gross profit
Sales revenue - cost of sales
Operating profit
Sales revenue - cost of sales - operating expenses
Profit for the year
Operating profit + profit from other activities - net finance costs - tax
Variance
The difference between the budgeted figure and the actual figure
Contribution per unit
Selling price - variable costs per unit
