Business Flashcards
What is the formula for variable costs ?
Variable costs= Variable cost per unit x N.O. Units sold
What is the formula for Market capitalisation?
Market capitalisation of a business = N.O. Issues shared x current share price
Added value formula is what
Added value= sales revenue - cost of bought in goods and services
What is the formula for labour productivity ?
Labour productivity = output per time period/ N.O. Employees
Unit costs formula ?
Total costs of production/ N.O. Units of output produced
Capacity utilisation formula is?
Actual output in a given time period/ maximum possible output in a given time period x 100
What is the formula for ROI
ROI/COI x 100
What is the formula for gross profit ?
Gross profit = sales rev- Variable costs per unit
What is the formula for profit from operations
Profit from operations = sales revenue - Cost of sales -operating expenses
What is the formula for profit for year?
Profit for year = operating profit + profits from other activities - Net finance costs - Tax
What is the Formula for variance ?
Variance = the difference between an actual and a budged figure. Favourable variance results in profit being higher than forecast. Adverse variance results in profits being lower than forecast.
What is contribution per unit?
Contribution per unit = selling price - variable costs per unit
What is the formula for total contribution?
Total contribution = contribution per unit x units produced or sold OR TOTAL CONTRIBUTION = TR - Total variable costs
What is the formula for the break-even output?
Break- even output= fixed costs/ contribution per unit
What is the margin of safety formula?
Margin of safety = actual level of output - break even level of output
What is the formula for gross profit margin?
Gross profit = gross profit/ sales revenue x100
What is the formula for profit from operations margin ?
Operating profit margin = operating profit/ sales revenue x 100
What is the formula for profit for year margin ?
profit for year margin = profit for year/ sales revenue x 100
What is the formula for labour turnover ?
Labour turnover = N.O. Staff leaving / Average N.O. Staff x 100
What is the for labour retention?
Labour retention = N.O. Staff Employed at end of period - N.O leavers/ N.O. Of staff employed at end of period x 100
Formula for employee costs as percentage of turnover?
Employee costs as percentage of turnover = Employee costs/ sales turnover x 100
What is the formula for labour costs per unit?
Labour cost per unit = Labour costs/ Units of output
What is the formula for ROCE
ROCE = operating profit/ Total equity + non-current liabilities
What is the formula for Gearing ?
Gearing= non-current liabilities/ total equity + non current liabilities
What is the formula for Inventory turnover?
Inventory turnover = cost of goods sold/ Average inventories held
What is the formula for Average rate of return
Average rate of return= Net return from project or N.O. Years/ initial cost of project X 100
