ALL

Question 1

Revenue

Answer 1

Selling price x units sold

Question 2

Market capitalisation

Answer 2

Number of shares issued x current share price

Question 3

Net gain (decision trees)

Answer 3

Expected value - cost of decision

Question 4

Market growth in a year

Answer 4

Change in size of market over a year / original size of the market x 100

Question 5

Added value

Answer 5

Sales revenue - cost of bought in goods or service

Question 6

Labour productivity

Answer 6

Output over a time period / number of employees

Question 7

Unit cost

Answer 7

Total costs / units sold

Question 8

Capacity utilisation

Answer 8

Actual output / maximum output x100

Question 9

Return on investment

Answer 9

Profit of investment / cost of investment x 100

Question 10

Gross profit

Answer 10

Revenue - cost of sales

Question 11

operating profit

Answer 11

Gross profit - operating expenses

Question 12

Profit for the year

Answer 12

Operating profit + profit from other activities - net finance costs - tax

Question 13

Profit margins (gross profit / operating profit / profit for the year)

Answer 13

X / revenue x 100

Question 14

Variance

Answer 14

Budgeted finance - actual finance

Question 15

Contribution per unit

Answer 15

Selling price - variable cost per unit

Question 16

Total contribution

Answer 16

Contribution per unit x units sold

Question 17

Total Contribution

Answer 17

Total revenue - total variable costs

Question 18

Break even output

Answer 18

Fixed costs / contribution per unit

Question 19

Margin of safety

Answer 19

Actual level of output - break even level of output

Question 20

Labour turnover

Answer 20

Number of staff leaving / number of staff employed x 100

Question 21

Labour cost per unit

Answer 21

Labour costs / units of output

Question 22

ROCE %

Answer 22

Operating profit / capital employed

Question 23

Capital employed

Answer 23

Total equity + non current liabilities

Question 24

Total equity

Answer 24

Total assets - total liabilities

Question 25

Current ratio

Answer 25

current assets / current liabilities

Question 26

Gearing ratio

Answer 26

Non current liabilities / capital employed x 100

Question 27

Payable days

Answer 27

Payables / cost of sales x 100

Question 28

Receivable days

Answer 28

Receivables / revenue x 365

Question 29

Inventory turnover

Answer 29

Cost of sales / average inventory held

Question 30

Average rate of return

Answer 30

Average annual return / initial cost of project x 100