# Formulas Flashcards Preview

## Business > Formulas > Flashcards

Flashcards in Formulas Deck (17)
1
Q

What formula would you use to work out total costs?

A

Total costs = fixed costs + variable costs

2
Q

What formula would you use to workout profit?

A

Profit= total revenue - total costs - fixed costs

3
Q

What formula would you use to workout total variable costs?

A

Variable costs = variable cost per unit x number of units sold

4
Q

What formula would you use to workout total revenue?

A

Selling price x number of units sold

5
Q

What formula would you use to workout market capitalisation of a business? ?

A

Number of issues sold x current share price

6
Q

What is market size in terms of volume?

A

It’s the quantity of goods and services produced in a particular market over a period of a time (usually one year)

7
Q

What is the market size in terms of value?

A

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

8
Q

What formula would you use to workout market share ?

A

Sales of one product, brand or business
__________________________________________ x 100

Total sales in the market

9
Q

What formula would you use to workout added value?

A

Sales revenue -costs of bought in goods and services

10
Q

What formula would you use to workout labour productivity ?

A

Output per time period
________________________
Number of employees

11
Q

What formula would you use to workout unit costs?

A

Total costs of production
__________________________
Number of units of output
produced

12
Q

What formula would you use to workout capacity utilisation?

A

Actual output in a given time period
________________________________________________ x 100
Maximum possible output in a given time period

13
Q

What formula would you use to workout return on investment?

A

Return on investment
_______________________ x 100
Cost of investment

14
Q

What formula would you use to workout gross profit?

A

Sales revenue - cost of sales

15
Q

What formula would you use to workout profit for year?

A

Operating profit + profit from other activities - net finance costs - tax

16
Q

What is:
Variance
Favourable variance

A

Variance - the difference between an actual and a budgeted figure
Favourable variance -profits being higher than forecasted
Adverse variance -profits being lower than forecasted

17
Q

What formula would you use to workout contribution per unit?

A

Selling price - variable costs per unit