calculation formulas Flashcards

1
Q

variable costs ( change with output )

A

output x variable cost per unit

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2
Q

total costs

A

variable costs + fixed costs

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3
Q

revenue

A

selling price x quantity sold

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4
Q

unit costs

A

total costs/number of units

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5
Q

profit

A

revenue - total costs ( OR contribution - total costs )

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6
Q

market capitalisation

A

current share price x number of shares sold

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7
Q

expected value

A

Probability x outcome

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8
Q

net gain

A

expected value - cost of decision

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9
Q

sales volume

A

number of items sold

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10
Q

sales value

A

volume x selling price

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11
Q

market growth

A

(% change in the market size) = market size in year - market size previous year/original market size x 100

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12
Q

sales growth

A

Change in market sales over a period of time/ original market sales x 100

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13
Q

market share

A

sales of one product/total sales in market x 100

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14
Q

price elasticity of demand (PED)

A

% change in quantity demanded/% change in price

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15
Q

Income elasticity of demand (YED)

A

% change in quantity demanded/% change in price

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16
Q

unit costs

A

total costs/total outputs

17
Q

labour productivity

A

output per period/number of employees per period

18
Q

labour productivity

A

output per period/number of employees per period

19
Q

capacity

A

maximum level of production

20
Q

capacity utilisation

A

actual output/maximum possible output x 100

21
Q

variance

A

actual - budget

22
Q

contribution

A

selling price per unit - variable cost per unit

23
Q

total contribution

A

contribution per unit x number of units sold

24
Q

break even

A

fixed costs/contribution per unit

25
margin of safety
actual output - breakeven output
26
gross profit
sales revenue - cost of sales
27
gross profit margin
gross profit/sales revenue x 100
28
operating profit
gross profit - expenses
29
operating profit margin
operating profit/sales revenue x 100
30
profit for the year margin
profit for the year/sales revenue x 100
31
ROI
operating profit/capital employed x 100
32
net cash flow
total inflows - total outflows
33
closing balance
opening balance/net cash flow
34
employee costs as a % of turnover
employee costs/sales revenue x 100
35
labour turnover
number of employees leaving in period/average number employed in period x 100
35
labour costs per unit
total labour costs/total units of output x 100
36
retention rate
number of employees with 1 or more years of service/overall employee numbers x 100