Equations Flashcards
(12 cards)
1
Q
Total costs
A
Total fixed costs + total variable costs
2
Q
Revenue
A
Price x quantity
3
Q
Break even
A
Fixed cost
——————
(Sales price - variable costs)
4
Q
Margin of safety
A
Actual or budgeted sales - break even sales
5
Q
Intrest %
A
Total repayment - borrowed amount
————————————
Borrowed amount
6
Q
Net cash flow
A
Cash inflows - cash outflows
7
Q
Opening balance
A
Closing balance of previous period
8
Q
Closing balance
A
Opening balance + net cash flow
9
Q
Gross profit
A
Sales revenue - costs of sales
10
Q
Definition of margin of safety
A
The amount that sales can fall before the break-even point is reached and the business makes no profit
11
Q
Definition of break event
A
The point where the businesses revenue is higher than costs, do the business makes money
12
Q
Average unit cost
A
Total cost
—————
Number of units
