formulas- theme 2 Flashcards Preview

business a level > formulas- theme 2 > Flashcards

Flashcards in formulas- theme 2 Deck (29)
Loading flashcards...
1

sales revenue=

sales revenue
--------------------
selling price

2

sales revenue =

selling price pu X No. units sold

3

variable costs=

variable cost per unit x No. units produced

4

total costs=

fixed costs + variable costs

5

profit=
in revenue, costs and sales

revenue - total costs

6

net cash flow=

inflows-outflows

7

closing balance=

opening balance + net cash flow

8

breakeven=

total costs = total revenue

9

margin of safety=

current output - breakeven output

10

breakeven using contribution=

total fixed costs
------------------------
contribution

11

contribution=

selling price per unit - variable costs per unit

12

profit=
in breakeven 1

total contribution - fixed costs

13

profit=
in breakeven 2

margin of safety x contribution per unit

14

gross profit=

revenue - cost of sales

15

operating profit=

gross profit - other operating expenses

16

profit for the year=
(net profit)

operating profit - interest & exceptional items

17

gross profit margin=

gross profit
----------------- x 100
revenue

18

operating profit margin=

operating profit
----------------------- X 100
revenue

19

profit for the year=
(net profit margin)

profit for the year(net profit)
-------------------------------- X 100
revenue

20

net current assets=
(working capital)

current assets - current liabilities

21

net assets=

non current assets + net current assets - no current liabilities

22

total equity=

share capital + retained profit + any other reserves

23

assets employed=

non current assets + net current assets

24

capital employed=

non current liabilities + total equity

25

current ratio=

current assets
-----------------------
current liabilities

26

acid test ratio=

current assets - inventory
------------------------------------
current liabilities

27

labour productivity=

total output(per period)
-------------------------------------
average No. employees (per period)

28

unit costs=

total costs in period
-----------------------------
output per period

29

capacity utilisation=

current output
-----------------------
maximum possible output