Calculations

Question 1

Sales revenue

Answer 1

selling price x units sold

Question 2

Sales

Answer 2

Output / Revenue

Question 3

Profit

Answer 3

Units sold x selling price

Question 4

Gross profit

Answer 4

Sales revenue - cost of sales

Question 5

Operating profit

Answer 5

Gross profit - Expenses

Question 6

Net Profit

Answer 6

Inflows - Outflows

Question 7

Break-Even

Answer 7

Fixed Cost / CPU

Question 8

Margin of Safety

Answer 8

actual output - break-even output

Question 9

PED

Answer 9

% change in quantity demand / % change in price

Question 10

Percentage change

Answer 10

new - old / old x 100

Question 11

Unit costs

Answer 11

total fixed cost + total variable cost / total number of units

Question 12

Unit variable cost
PURCHASING EOS ONLY

Answer 12

total variable cost / total units

Question 13

Labour productivity

Answer 13

output per period / number of employees per period

Question 14

Market share

Answer 14

total sales revenue of company / total sales revenue of market x 100
or
total volume of company / total sales volume of market x 100

Question 15

Market growth

Answer 15

difference in total sales revenue of market / original sales revenue for the market x 100
or
difference in total sales volume of market / original sales volume for the market x 100

Question 16

YED

Answer 16

% change in demand / % change in income

Question 17

Cost plus

Answer 17

cost of a product + a mark-up

Question 18

CPU

Answer 18

selling price - variable costs

Question 19

Profit variance

Answer 19

actual profit - budget profit

Question 20

Productivity

Answer 20

total output / total inputs x 100

Question 21

Profit margin

Answer 21

profit / sales revenue x 100

Question 22

Return on capital employed (ROCE)

Answer 22

operating profit / capital employed x 100

Question 23

Capital employed

Answer 23

non-current liabilities + total equity

Question 24

Total Equity

Answer 24

shareholder equity/capital + retained profit

Question 25

Gearing

Answer 25

non-current liabilities / capital employed x 100

Question 26

Current ratio

Answer 26

current assets / current liabilities

Question 27

Labour turnover

Answer 27

number of employees leaving during period / average number employed during period x 100

Question 28

Labour retention

Answer 28

number of staff staying (over a period of time) / average number of staff in post (in period of time) x 100

Question 29

Absenteeism

Answer 29

number of employees absent during period / number employed during period x 100

Question 30

Annual absenteeism

Answer 30

total number of staff absent over a year / total number of staff days that should have been worked x 100

Question 31

Acid Test Ratio

Answer 31

(current assets - inventory) / current liabilities : 1

Question 32

Net assets

Answer 32

total assets - total liabilities

Question 33

Total liabilities

Answer 33

current liabilities + non-current liabilities

Question 34

Total assets

Answer 34

current assets + non-current assets

Question 35

Net current assets

Answer 35

current assets - current liabilities

Question 36

Average number employed
(labour turnover)

Answer 36

number of employees at the beginning + number of employees at the end / 2

Question 37

Gross Profit Margin

Answer 37

gross profit / sales revenue x 100

Question 38

Variation

Answer 38

actual sales for the period - the four quarter moving average (trend)

Question 39

Payback

Answer 39

total NCF - initial investment
answer / number of years
answer / initial investment x 100

Question 40

ARR

Answer 40

total net profit from a project ÷number of years / initial cost x 100

Question 41

NPV

Answer 41

NCF x discount factors
add discount factors together
discount factor - initial investment

Question 42

Critical Path

Answer 42

EST = choose largest number
LFT = choose smallest number