theme 2 Flashcards
(16 cards)
Net cash flow
=total inflows- total outflows
sales volume
=total number of units sold over a period of time
sales revenue
=number of units sold x unit price
Break even formula?
Total fixed costs/contribution per unit
contribution per unit formula?
selling price-variable cost per unit
margin of safety formula?
actual output-breakeven output
variance formula?
actual figure-budgeted figure
profit margin formula?
profit/revenue X100
ROCE (return on capital employed) formula?
operating profit/capital employed X100
current ratio
current assets/current liabilities
acid test ratio
(current assets-inventory)/current liabilities
productivity
output per period/ number of employees in that period
capacity utilisation
(actual level of output/maximum level of output)x100
gross profit
sales revenue- cost of sales
operating profit
gross profit- operating expenses
net profit
operating profit-finance costs
