berry test Flashcards
examples of financial objectives
return on objectives
capital structure
revenue, costs, profit, cash flow
ROI formula
operating profit / capital invested x 100
formula for gross profit
sales revenue - cost of sales
operating profit formula
gross profit - expenses
profit for the year
operating profit - interest/taxation
what sort of things can you budget?
income, expenditure, profit
what is a variance?
the difference between the budget and the actual
is a positive variance favourable or adverse?
favourable
is a negative variance favourable or adverse
adverse
what is break even point
where total revenue = total costs
contribution formula
selling price per unit - variable cost per unit
total contribution formula
total revenue - total variable costs
break even point formula
fixed cost / contribution
margin of safety formula
actual output - break even level of output
