business formulas theme 2 Flashcards
net cash flow
cash inflows- cash outflows
closing balance
opening balance + net cash flow
sales volume
sales revenue / selling price per unit
sales revenue
quantity sold x selling price per unit
total costs
fixed costs + total variable costs
fixed costs
total costs - total variable costs
total variable costs
total costs - fixed costs
contribution per unit
selling price - variable costs per unit
break even point
fixed costs / contribution per unit
margin of safety
actual output - break even level of output x 100
variance analysis
budgeted - actual amount
gross profit
sales revenue - cost of sales
cost of sales
opening stock + purchases - closing stock
operating profit
gross profit - expenses
profit for the year
operating profit - interest and tax
gross profit margin
gross profit / sales revenue x 100
operating profit margin
operating profit / sales revenue x 100
profit for the year margin
profit for the year / sales revenue x 100
current ratio
current assets / current liabilities
acid test ratio
liquids assets ( current assets - stock) / current liabilities
working capital
current assets - current liabilities
capacity utilisation
actual output / maximum output x 100
productivity ( labour )
output per period ( units ) / number of employees in that period
total variable costs the other one
average variable costs x number of units
