Calculations Flashcards

1
Q

How do you calculate total costs?

A

Total costs = fixed costs + variable costs

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2
Q

How do you calculate profit?

A

Profit = total revenue = total costs

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3
Q

How do you calculate variable costs (Total variable costs)?

A

Variable costs = variable cost per unit x number of units sold

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4
Q

How do you calculate Market capitalisation?

A

Market Capitalisation = number of issued shares x current share price.

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5
Q

How do you calculate Net Gain from a decision tree

A

Net Gain = Expected value - initial cost of decisions

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6
Q

How do you calculate market share?

A

Market share = Sales of one product / total sales in the market x 100.

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7
Q

How do you calculate labour productivity?

A

Labour Productivity = Output per time period/number of employees.

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8
Q

How do you calculate Unit Costs (Average costs)

A

Unit Costs = total costs of production / number of units of ouput produced

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9
Q

How do you calculate Capacity Utilisation?

A

Capacity Utilisation = actual output in a given time period / maximum possible output in a given time period x 100

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10
Q

How do you calculate Return on Investment?

A

Return on Investment = return on investment / cost of the investment x100

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11
Q

How do you calculate Gross Profit?

A

Gross Profit = Sales revenue - Cost of Sales

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12
Q

How do you calculate contribution per unit?

A

Contribution per unit = selling price - variable cost per unit

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13
Q

How do you calculate break-even output?

A

Break-even output = Fixed Costs / Contribution per unit

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14
Q

How do you calculate Margin of Safety?

A

Margin of Safety = actual level of output - breakeven level of output

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15
Q

How do you calculate Gross Profit Margin?

A

Gross Profit Margin = Gross Profit / Sales Revenue x 100

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16
Q

How do you calculate employee retention rate?

A

Labour Turnover = number of staff leaving during the year / average number of staff employed by the business during the year x 100

17
Q

How do you calculate Labour Cost Per Unit?

A

Labour cost per unit = Labour costs / Unit of Output

18
Q

How do you calculate Return on Capital Employed (ROCE)?

A

ROCE = Operating Profit / Total Equity + Non - Current Liabilities x 100

19
Q

How do you calculate the Current Ratio?

A

Current Ratio = Current Assets / Current Liabilities

20
Q

How do you calculate Gearing?

A

Gearing = Non-current Liabilities / Total Equity + Non-current liabilities x 100

21
Q

How do you calculate Payables Days?

A

Payable days = Payables / Cost of Sales x365

22
Q

How do you calculate Receivable days?

A

Receivable days = Receivables / Sales Revenue x365

23
Q

How do you calculate Inventory Turnover?

A

Inventory Turnover = Cost of goods sold / Average Inventories Held

24
Q

How do you calculate the Average Rate of Return?

A

Average rate of return = Net return from project / Initial cost of project x100