Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Business Formula
Key Business Formulas
| Term | Definition |
|---|---|
| Total Revenue | Selling price x quantity sold |
| Total costs | Fixed costs + total variable costs |
| Profit | Total revenue – total costs |
| Break even output | Fixed Costs/Contribution per unit (SP – VC) |
| Contribution per unit | Selling Price per unit – Variable Cost per unit |
| Variable cost per unit | Total variable costs/ Number of units |
| Margin of safety | Actual output – break even output |
| Total contribution | CPU x quantity of units sold |
| Gross Profit | Sales revenue – cost of goods sold (cost of sales) |
| Costs of good sold | Opening inventory + purchases – closing inventory |
| Operating Profit | Gross Profit – Expenses (overheads) |
| Straight line method | Cost – residual value (resale value)/Expected life (years) |
| Net current assets | Current assets - Current liabilities |
| Net assets | Non current assets + net current assets – non current liabilities |
| Total equity | Owners/shareholders capital + retained profit - drawings |
| Fixed Costs | Total Costs – Total Variable Costs |
| Total Variable Costs | Total Costs – Fixed Costs |
| Retained Profit (Profit for end of year) | Net Profit – Tax and Interest |
| Net Cash Flow | Total Cash In – Total Cash Out |
| Closing Balance | Net Cash Flow + Opening Balance |
| Selling Price | Total Revenue/Number of Units Sold |
| Profit | Contribution per unit x Number sold above break even point |
| Budget Variance | Actual Figure – budgeted figure |
| Labour Productivity | Output per time period/Number of employees at work |
| Capacity Utilisation | Actual output x 100/Maximum possible output |
| Absenteeism Rate | Total Number absent per period x 100/Average number employed per period |
| Labour Turnover | Total Number of employees leaving per period x 100/Average number of employees per period |
| Labour Retention Rate | Total number of employees remaining per period x 100/Average number of employees per period |
| Average Rate of Return | Average annual profit* x 100/Investment cost To work out Average annual Profit = Total Returns – Investment cost/Project life |
| Net Present Value | NPV = Total discounted returns – investment cost |
Created by:
durquhart1
Popular Business sets