Business Formula Flashcards
Productivity
Quantity of output / Quantity of input
Labour productivity
Output (over a period of time) / Number of employee
Total cost
Fixed cost + Variable cost
Average cost (unit cost)
Total cost / Total number of output
Contribution
Selling price - Variable cost
Break-even level of output
Total fixed cost / Contribution
Gross profit
Revenue - Cost of goods sold
Net cash flow
Cash inflows - Cash outflows
Closing bank balance
Net cash flow + Opening bank balance
Net worth / Equity
Assets - Liabilities
Cost of sales
Total variable cost of production + (opening inventory - closing inventory of finished goods)
Net profit
Gross profit - expenses
Profit after tax
Net profit - tax
Retained profit
Profit after tax - dividends
Shareholders’ equity
Total assets - Total liabilities
