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Flashcards in formulas Deck (40)
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1
Q

revenue

A

price X quantity

2
Q

total costs

A

fixed costs + total variable costs

3
Q

unit cost per unit

A

total cost / output

4
Q

variable cost per unit

A

total variable cost / quantity

5
Q

profit

A

revenue - total costs

6
Q

gross profit

A

revenue - variable costs

7
Q

net profit

A

revenue - total costs

OR

gross profit - other expenses

8
Q

profit for the year

A

all income - all expenditures

9
Q

gross profit margin

A

gross profit / revenue X 100

10
Q

net profit/operating margin

A

net profit / revenue X 100

11
Q

profit for the year margin

A

profit for the year / revenue X 100

12
Q

return on investment

A

net profit / capital invested X 100

13
Q

gearing

A

long term loans / capital employed X 100

14
Q

market capitalisation

A

share price X number of issued shares

15
Q

contribution per unit

A

selling price per unit - unit variable costs

16
Q

total contribution

A

contribution per unit X number of items sold

17
Q

profit made from total contribution

A

total contribution - fixed costs

18
Q

breakeven level of output

A

fixed costs / contribution per unit

19
Q

margin of safety

A

actual level of output - breakeven point

20
Q

capacity utilisation

A

current output / maximum output X 100

21
Q

labour productivity

A

total output / the number of workers

22
Q

labour cost per unit

A

total labour costs / output

23
Q

labour cost as a percentage of revenue

A

labour cost / revenue X 100

24
Q

labour turnover

A

number of staff leaving per year / average number of staff employed in a year X 100

25
Q

labour retention

A

number of staff employed for a year or more / average number of staff employed in a year X 100

26
Q

market share by volume

A

the total number of units sold in a market

27
Q

market size by value

A

the number of units X sold by price

28
Q

market share

A

sales of firm A / total market size X 100

29
Q

market growth

A

change in market size / old market size X 100

30
Q

percentage change in demand

A

percentage change in price X PED

31
Q

percentage change in demand

A

percentage change in income X YED

32
Q

percentage change

A

new - original = difference

difference / original X 100

33
Q

labour productivity

A

no of employees per period

= units of output per worker

34
Q

labour turnover

A

average no of staff X 100

= % of workers who left per year

35
Q

retention rates

A

average no of staff X 100

= employee retention

36
Q

employee costs as a % of turnover

A

sales turnover/revenue

X 100

37
Q

labour cost per unit

A

total units of output

X 100

38
Q

labour productivity

A

number of employees

= units of output per worker

39
Q

unit costs

A

units of output

40
Q

capacity utilisation

A

maximum possible output per year

X 100