AS Finance Formulas Flashcards
1
Q
Profit
A
Total revenue - total costs
2
Q
Contribution
A
Selling price - variable costs
3
Q
Sales revenue
A
Quantity sold x selling price
4
Q
Total costs
A
Fixed costs + variable costs
5
Q
Break even
A
Fixed costs / (selling price per unit - variable costs per unit)
6
Q
Margin of safety
A
Selected level of business activity - break-even point
7
Q
Budget variance
A
Budgeted - Actual
8
Q
Net cash flow
A
Total receipts - total payments
9
Q
Closing balance
A
Opening balance + net cash flow
10
Q
Cost of sales
A
Opening stock + purchases -
Closing sales
11
Q
Gross profit
A
Sales revenue - cost of sales
12
Q
Gross profit %
A
Gross profit / sales revenue x100
13
Q
Average rate of return
A
Average annual profit / initial investment x100
14
Q
Average annal profit
A
Total profit / number of years
