Theme 2 Flashcards
(19 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
Total variable costs
Number of units sold x Variable cost per unit
Total costs
Fixed costs + variable costs
Contribution per unit
Selling price per unit- Variable cost per unit
Total contribution
Contribution per unit x Number of units sold
Breakeven
Fixed costs/ Contribution per unit
Variance
Actual-budget
Gross profit
Sales revenue minus cost of sales
Operating profit
Gross profit minus overheads
Net profit
Operating profit plus or minus finance costs
Gross profit margin
(Operating profit/sales revenue) x100
Operating profit margin
(Operating profit/ sales revenue) x100
Profit for the year margin
(Profit for the year/sales revenue) x100
Current ratio
Current assets/Current liabilities
Acid test ratio
(Current assets-stock)/ current liabilities
Productivity
Output per period divided by number of employees in the period
Capacity utilisation
(actual level of output/maximum possible output) x100
