component 1 formulas Flashcards

1
Q

total revenue

A

= total quantity sold X selling price

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2
Q

profit

A

= total revenue- total costs

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3
Q

total costs

A

= fixed costs+ variable costs

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4
Q

break even

A

= fixed costs/ selling price- variable cost per unit

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5
Q

what is meant by break even

A

where total revenue = total costs

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6
Q

variable costs

A

variable cost per unit X quantity/ output

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7
Q

what are fixed costs

A

constant

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8
Q

total costs

A

= fixed costs+ variable costs

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9
Q

sales revenue

A

= selling price X quantity

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10
Q

contribution per unit

A

=selling price per unit- variable cost per unit

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11
Q

total contribution

A

= contribution per unit X number of units sold

OR

= total sales - total revenues

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12
Q

profit 2

A

total contribution- fixed costs

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13
Q

margin of safety

A

actual sales- break even level of sales

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14
Q

labour turnover

A

average staff leaving/ average number of staff employed X100

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15
Q

labour productivity

A

total output per period of time/ average number of employees per period of time

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16
Q

absenteeism

A

total number of staff absence days over a year/ total number of working days that should have been worked X100

17
Q

whats the average staff turnover

18
Q

market share

A

sales of a business/ total sales in a market X 100

19
Q

net cash flow

A

income- expenditure ( inflows- outflows)

20
Q

opening balence

A

same as closing balence of previous month

21
Q

closing balence

A

opening balence+ net cash flow

22
Q

added value

A

sales revenue- cost of goods sold

23
Q

cost of sales

A

opening inventories + purchases - closing inventories

24
Q

gross profit

A

sales reveneue - cost of sales

25
net profit def
profit that belongs to the sole trader following a reduction of all expenses from the gross profit. the sole trader has to pay income tax on this profit
26
net profit formula
gross profit -expenses
27
gross profit margin
%=gross profit/sales revenue X100
28
net profit margin
%=net profit/ sales(rev) X100
29
turnover
COS +gross profit
30
gross profit margin def
measures the proportion of money left over from revenues after accounting for the cost of goods sold If the Gori's profit margin is 30% this means that the business's cost of sales are 70% of its turnover because turnover equals cost of sales plus gross profit
31
32
Net profit Margin def
Measures how Much out of every pound of sales a company actually keeps in earnings
33
Operating profit margin
Operating profit/ SalesX100
34
variance
budgetted figure- actual figure