Business finance formula Flashcards by Ethan Paylor YR10Y | Brainscape

Q

The formula for total cost :

A

Total cost = Fixed costs + Variable costs

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for average cost:

A

Total cost
————— (divided/ over)
Quantity produced

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for profit :

A

Total revenue - Total Costs

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for the break-even point

A

Selling price - Variable cost per unit

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for Gross Profit margin :

A

Gross profit
—————– * 100
Revenue

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for Operating Profit Margin :

A

Operating profit
———————– *100
Revenue

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for Current Ratio

A

Current liabilities

1 : 1.5-2 is ideal

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for Mark- Up

A

Profit per item
——————– *100
Cost per item

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for the acid test ratio

A

Current liabilities

1:1 is ideal

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for the Return on Capital investment

A

Operating profit
———————– * 100
Capital employed

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The formula for gross profit :

A

Revenue- Cost of sales

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Formula for operating profit :

A

Gross profit - Expenses

How well did you know this?

1

Not at all

2

3

4

5

Perfectly