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Business - Formulas > Book 1 > Flashcards

Book 1 Flashcards

1
Q

How do you calculate Total Revenue?

A

Price per unit X Quantity of units sold.

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2
Q

How do you calculate Total Costs?

A

Fixed costs + Variable costs

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3
Q

How do you calculate profit?

A

Total revenue - Total Costs

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4
Q

How do you calculate market capitalisation?

A

Total outstanding shares X current market price of an individual share

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5
Q

How do you calculate the expected value

Decision trees

A

Value of the outcome X profitability

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6
Q

How to calculate net gain

Decision trees

A

Both expected values added together = Total expected value TEV
TEV - Cost =net gain

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7
Q

How to calculate sales value

A

Volume X average price

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8
Q

What is the formula for market growth as a %?

A

Market size in year - market size in previous year
—————————— market size in previous year

X 100

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9
Q

Formula for sales growth

A

Sales in that year - sales in previous year
————————–sales in previous year

X 100

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10
Q

Formula for market share

A

Total sales in the market

X 100

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11
Q

Formula for price elasticity of demand

A

% change in price

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12
Q

Formula for income elasticity of demand

A

% change in income

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13
Q

Formula for % change in quantity demanded

A

Original quantity demanded

X 100

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14
Q

Formula for % change in price

A

Original price

X 100

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15
Q

What is the formula for unit costs?

A

Units of output

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16
Q

How to calculate punctuality

A

Total deliveries

X 100

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17
Q

Formula for added value

A

Sales revenue - cost of bought-in materials, components and services

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18
Q

How is labour productivity calculated?

A

Number of employees per period

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19
Q

How to calculate capacity utilisation?

A

Actual output per annum
(Month)
————————–
Maximum possible output per annum (month)

X 100

20
Q

Formula for Return on investment as a %

A

Cost of the investment

X 100

21
Q

What is the calculation for Return on investment?

A

Financial gains from the investment - Costs of the investment

22
Q

Formula for debts as a proportion of long term funding

A

Long term funding

X 100

23
Q

Formula for gross profit

A

Revenue - cost of sales

24
Q

Calculation for Operation profit

A

Gross profit (revenue-cost of sales) - administrative expenses

25
Q

What is the formula for Profit for the year

A

Operating costs - net finance - taxation

26
Q

Calculate profit budget

A

Income - expenditure

27
Q

How do you calculate variance

A

Budget figure - actual figure

28
Q

How to calculate net cash flow

A

Cash inflows - cash outflows

29
Q

Formula for closing cash balance

A

Opening cash balance + net cash flow

30
Q

Calculate net monthly balance

A

Total inflows - total outflows

31
Q

Calculate closing balance

A

Opening balance + net monthly balance

32
Q

Formula for the length of working capital cycle

A

Length of time that goods are held as inventories + time taken for receivables to be paid - period of credit received from suppliers (payables)

33
Q

What two ways can the total contribution of a product be calculated?

A

Contribution per unit X number of units sold

Sales revenue - total variable costs

34
Q

Formula for weekly profit

A

Total contribution - fixed costs

35
Q

How to calculate total contribution

A

Contribution per unit X number of units sold

36
Q

Calculation for contribution per unit

A

Selling price - variable costs

37
Q

Formula for break even output

A

Contribution per unit

38
Q

Formula for target profit output

A

Contribution per unit

39
Q

How do yo calculate Gross profit margin (%)

A

Sales revenue (turnover)

X100

40
Q

Formula for operating profit margin (%)

A

Sales revenue (turnover)

X100

41
Q

What is the formula for the profit of the year margin (%)

A

Sales revenue (turnover)

X100

42
Q

Calculate labour turnover

A

Average number employed over a given period

X100

43
Q

Calculate retention rates

A

Overall workforce numbers

X100

44
Q

Formula for labour productivity

A

Number of employees per period

45
Q

How is labour costs per unit calculated ?

A

Total units of output

46
Q

Formula for the employee costs as a percentage of turnover

A

Sales turnover

X100

Business - Formulas (2 decks)

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