Calculations

Question 1

PED (Price elasticity of demand)

Answer 1

% Change in QD / % Change in Price

Question 2

YED

Answer 2

% Change in QD / % Change in income

Question 3

Market Share

Answer 3

(Business Sales / Market Sales) x 100

Question 4

Market size

Answer 4

Total Value of Business sale

Question 5

Market growth

Answer 5

(Difference / original) x 100

Question 6

Total costs

Answer 6

Fixed Costs + variable Costs

Question 7

Total variable costs

Answer 7

Variable cost per unit of output x quantity

Question 8

Revenue

Answer 8

Selling price x Quantity sold

Question 9

Profit

Answer 9

Revenue - Total costs

Question 10

Contribution (per unit)

Answer 10

Selling price per unit - Variable Cost per unit

Question 11

Total Contribution

Answer 11

Total Sales Revenue - Total Variable costs

Or

Contribution per unit X number of Units

Question 12

Margin of safety

Answer 12

Actual Level of output - Break even point

Question 13

Net Cash Flow

Answer 13

Inflow - Outflows

Question 14

Budget Variance

Answer 14

Budgeted - Actual

Question 15

Gross Profit

Answer 15

Revenue - Cost of Goods Sold

Question 16

Net Profit

Answer 16

Revenue - Total Costs

Or

Gross profit - Expenses

Question 17

Net Profit Margin

Answer 17

(Net profit / Revenue) x 100

Question 18

Labour Turnover %

Answer 18

(Number of Leavers / Avg no of employees) x 100

Question 19

Labour Productivity

Answer 19

Output / Number of Employees

Question 20

Added Value

Answer 20

Value of output - Value of input (costs)
[selling price - cost of raw materials]

Question 21

Capacity utilisation

Answer 21

(Actual output / Maximum Possible Output) x 100

Question 22

Lead Time

Answer 22

Time difference between re-order quantity and stock increase

Question 23

Re-Order Quantity

Answer 23

Increase in stock level when delivery received

Question 24

Moving Average

Answer 24

Previous Month + current month + Next month / 3

Question 25

Working Capital

Answer 25

Current Assets – Current Liabilities

Question 26

Capital
Employed

Answer 26

Shareholder funds + Non current liabilities

Question 27

Depreciation

Answer 27

Historical Cost – Residual Value

Question 28

ROCE

Answer 28

Net Profit (B4 Tax) / Capital Employed

Question 29

Current Ratio

Answer 29

Current Assets / Current Liabilities

Question 30

Acid Test

Answer 30

(Current Assets - Stock) / Current Liabilities

Question 31

Gearing

Answer 31

(NCL / Capital Employed) x100

Question 32

Decision Tree:
Expected Value

Answer 32

Expected Value – Initial Cost

Question 33

Decision Tree:
Net Gain

Answer 33

Expected Value – Initial Cost

Question 34

CPA: EST

Answer 34

Previous EST + Previous Activity Duration
(Work from left to right)
(Choose biggest outcome if more than one route)

Question 35

CPA: LFT

Answer 35

Previous LFT – Following Activity Duration
(Work from right to left)
(Choose smallest outcome if more than one route)

Question 36

CPA: FLOAT

Answer 36

LFT – Duration -EST

Question 37

Payback

Answer 37

(Number of Full years) &
Amount needed in final year
Amount getting in final year
X (12Months)

Question 38

Average Rate of
Return

Answer 38

(Average Annual Profit / Cost of Investment) x 100

Question 39

Net Present
Value

Answer 39

Multiply each year’s income by its discount rate
2. Add them together
3. Deduct initial cost

Question 40

Contribution

Answer 40

Selling Price Per Unit – Variable Cost Per Unit = Contribution Per Unit

Contribution Per Unit x Units Sold = Total Contribution