formulas

Question 1

what is the formula for AVERAGE COST?

Answer 1

average cost= total cost
/
output

Question 2

what is the formula for SALES REVENUE?

Answer 2

sales revenue= quantity x selling price

Question 3

what is the formula for PERCENTAGE CHANGE?

Answer 3

percentage change= new figure - old figure
/
old figure x 100

Question 4

what is the formula for NET CASH FLOW?

Answer 4

net cash flow= total inflows - total outflows

Question 5

what is the formula for MARKET SHARE?

Answer 5

market share= sales of a business
/
total sales in the market x 100

Question 6

what is the formula for PRICE ELASTICITY OF DEMAND?

Answer 6

percentage change in quantity demanded
/
percentage change in price

Question 7

what is the formula for ACID TEST RATIO?

Answer 7

current assets - inventories
/
current liabilities

Question 8

what is the formula for WORKING CAPITAL?

Answer 8

current assets - current liabilities

Question 9

what is the formula for CLOSING BALANCE?

Answer 9

net cash flow + opening balance

Question 10

what is the formula for TOTAL VARIABLE COSTS?

Answer 10

quantity x variable cost per unit

Question 11

what is the formula for TOTAL COSTS?

Answer 11

total fixed costs + total variable costs

Question 12

what is the formula for CAPACITY UTILISATION?

Answer 12

current output
/
maximum possible output x 100

Question 13

what is the formula for GROSS PROFIT?

Answer 13

revenue - cost of sales

Question 14

what is the formula for CONTRIBUTION?

Answer 14

selling price - variable cost per unit

Question 15

what is the formula for INCOME ELASTICITY OF DEMAND?

Answer 15

percentage change in quantity demanded
/
percentage change in income

Question 16

ution what s the formula for CURRENT RATIO?

Answer 16

current assets
/
current liabilities

Question 17

what is the formula for BREAK EVEN?

Answer 17

fixed costs
/
contribution

Question 18

what is the formula for OPERATING PROFIT MARGIN?

Answer 18

operating profit
/
revenue x 100

Question 19

what is the formula for OPERATING PROFIT?

Answer 19

gross profit - operating expenses

Question 20

what is the formula for GROSS PROFIT MARGIN?

Answer 20

gross profit
/
revenue x 100

Question 21

what is the formula for ACID TEST RATIO?

Answer 21

current assets - stock
/
current liabilities :1

Question 22

what is the formula for AVERAGE RATE OF RETURN (ARR)?

Answer 22

net return(profit) per annum
/
capital outlay (cost) x 100

Question 23

what is the formula for the PAYBACK METHOD OF INVESTMENT APPRAISAL?

Answer 23

amount required
/
net cash flow in year x 12

Question 24

what is the formula for TOTAL FLOAT?

Answer 24

LFT activity - EST activity - duration

Question 25

what is the formula for FREE FLOAT?

Answer 25

EST start of next task - EST start of this task - duration

Question 26

what is the formula for ASSETS?

Answer 26

capital + liabilities

Question 27

what is the formula for WORKING CAPITAL?

Answer 27

current assets - current liabilities

Question 28

what is the formula for GEARING RATIO?

Answer 28

non current liabilities / capital employed x 100

Question 29

what is the formula for CAPITAL EMPLOYED?

Answer 29

total assets - current liabilities

Question 30

what is the formula for RETURN ON CAPITAL EMPLOYED (ROCE)?

Answer 30

operating profit / capital employed x 100

Question 31

what is the formula for LABOUR PRODUCTIVITY?

Answer 31

total output (over a period time) / average number of employees (over a period of time)

Question 32

what is the formula for LABOUR TURNOVER?

Answer 32

number of staff leaving (over a period of time) / average number of staff overall x 100

Question 33

what is the formula for LABOUR RETENTION?

Answer 33

number of staff staying (over period of time) / average number of staff overall x 100

Question 34

what is the formula for RATE OF ABSENTEEISM?

Answer 34

number of staff absent on a day / total number of staff employed x 100