# Calculations - THEMES 1,2&3 Flashcards

1
Q

Percentage change:

A

(difference between new & original/ original) x100

2
Q

market growth (figure when given the old figure and % increase):

A

value x (1 + converted decimal)

3
Q

market share:

A

4
Q

price elasticity of demand (PED):

A

% change in quantity demanded/ % change in price

5
Q

Income elasticity of demand (YED):

A

% change in quantity demanded/ % change in real income

6
Q

total revenue:

A

sales x selling price per unit

7
Q

total variable costs:

A

variable cost per unit x output

8
Q

total costs:

A

total variable costs + total fixed costs

9
Q

net cash flow: (2 calculations)

A

receipts - payments

inflows - outflows

10
Q

opening balance:

A

equals previous months closing balance

11
Q

closing balance:

A

opening balance + net cash flow

12
Q

contribution per unit:

A

selling price per unit - variable costs per unit

sppu - vcpu

13
Q

breakeven output:

A

fixed cost/ contribution per unit

14
Q

total contribution:

A

contribution per unit x output

15
Q

margin of safety:

A

actual sales output - breakeven level

16
Q

profit:

A

total revenue - total costs

17
Q

variance:

A

actual - budgeted figure

18
Q

profit margins:

A

(GP or OP or NP/ revenue) x100

19
Q

gross profit:

A

revenue - cost of sales

20
Q

operating profit:

A

21
Q

net profit:

A

operating profit - taxation

22
Q

current ratio:

A

current assets/ current liabilities

23
Q

acid test ratio:

A

current assets - stock/ current liabilities

24
Q

productivity:

A

output/ number of employees

25
Q

capacity utilisation:

A

(current capacity level/total capacity) x100

26
Q

gearing:

A

(non current liabilities/ capital employed) x100

27
Q

return on capital employed: (2)

A

(operating profit/capital employed) x100

(operating profit/ total assets - current liabilities) x100

28
Q

payback:

A

sum invested/ net cash per time period

29
Q

average rate of return:

A

(average annual return/ initial outlay) x100

30
Q

labour turnover:

A

(number of staff leaving the firm per year/ average number of staff) x100

31
Q

labour productivity:

A

output per period/ number of employees per period

32
Q

labour retention:

A

(staff not leaving in the past year/ average number of staff employed in the year) x100

33
Q

absenteeism rate:

A

(days absent per year/ total number of working days) x100

34
Q

cost per unit:

A

total fixed costs + total variable costs / total units produced