Business Formulae Flashcards
1
Q
Total costs
A
total fixed costs + total variable costs
2
Q
Revenue
A
Price x quantity
3
Q
Break even point in units
A
Fixed cost / (sales price - variable cost)
4
Q
Break even point in costs / revenue is equal to
A
Break even point in units x sales price
5
Q
Margin of safety
A
actual or budgeted sales - break even sales
6
Q
Interest (on loans) in %
A
((Total repayment - borrowed amount)/ borrowed amount) x 100
7
Q
Net cash flow
A
cash inflows - cash outflows in a given period
8
Q
Opening balance
A
Closing balance from previous month
9
Q
Closing balance
A
Opening balance + net cash flow
10
Q
Gross profit
A
Sales revenue - cost of sales
11
Q
Gross profit margin in %
A
(Gross profit/sales revenue) x 100
12
Q
Net profit
A
gross profit - other operating expenses and interest
13
Q
Net profit margin
A
(Net profit/sales revenue) x 100
