theme 2 Flashcards
(19 cards)
sales revenue
selling price x sales volume
contribution per unit
selling price per unit - variable costs per unit
total contribution
contribution per unit x number of units sold
profit/loss
total contribution - fixed costs
or
total revenue - total costs
break-even point
total revenue = total costs
margin of safety
current sales volume / (output - break even output )
gross profit
revenue - total variable costs (cost of sales)
operating profit
gross profit - foxed costs
gross profit margin
(gross profit / revenue) x 100
operating profit margin
(operating profit/ revenue) x 100
net profit margin
(net profit / revenue) x 100
net cashflow
cash inflow - cash outflow
break even output
total fixed costs / contribution per unit
budget variance
actual figure - budgeted figure
working capital
current assets - current liabilities
current ratio
Current Assets / Current Liabilities
acid test ratio
(Current Assets – Stock) / Current Liabilities
capacity utilisation
(Actual Output / Max Output) × 100
labour productivity
Output per time period / No. of employees
