Equations 1

Question 1

Revenue equation

Answer 1

Price per unit X Quantity sold

Question 2

Profit

Answer 2

Total revenue- total costs
Total contribution - fixed costs

Question 3

Market capitalisation

Answer 3

Shares issued X current share price

Question 4

Expected value two outcomes

Answer 4

(Pay off A X probability of A)

+

(Pay off B x probability of B)

Question 5

Net gain

Answer 5

Expected value - initial cost of decision

Question 6

Labour cost per unit

Answer 6

Labour costs/ units of outputs

Question 7

Employee costs as % of turnover

Answer 7

Employee costs/ turnover (x100)

Question 8

Retention rate

Answer 8

Employees remained/start of period x100

Question 9

Labour turnover

Answer 9

Staff leaving/ employed x 100

Question 10

Margin of safety

Answer 10

Actual sales- break even sales

Question 11

Total contribution

Answer 11

Contribution per unit x unit sold

Total revenue - TVC

Question 12

Contribution per unit

Answer 12

Selling price - variable costs per unit

Question 13

Break even output

Answer 13

Fixed costs/ contribution

Question 14

Variance equation

Answer 14

Budgeted- actual figure

Question 15

Net profit margin / profit for year margin

Answer 15

Net profit/ sales x100

Question 16

Operating profit margin

Answer 16

Operating profit/ revenue x100

Question 17

Gross profit margin

Answer 17

Gross profit / revenue x100

Question 18

Profit for year

Answer 18

Operating profit + profit from others - net finance costs- tax

Question 19

Operating profit

Answer 19

Gross profit- operating expenses

Question 20

Gross profit

Answer 20

Revenue- cost of sales

Question 21

Return on investment

Answer 21

Operating profit/ capital invested x100

Question 22

Capacity utilisation

Answer 22

Actual output/ max output x100

Question 23

Unit costs AC

Answer 23

Total costs/ number of units of output

Question 24

Labour productivity

Answer 24

Output in a time / number of employees

Question 25

Added value equation

Answer 25

Sales revenue- cost of bought in Goods n services

Question 26

Market share

Answer 26

Sales of one product/ market sales x100

Question 27

Market growth

Answer 27

Change in size of market/ oringianl size. X100

Question 28

Variable costs

Answer 28

Cost per unit x total number of units

Question 29

Fixed costs

Answer 29

Total cost of production- (VC per unit x units produced)

Question 30

Total costs

Answer 30

Fixed costs + variable costs

Question 31

Working capital

Answer 31

Current assets - current liability’s

Question 32

Net assets

Answer 32

Net current assets + non current assets- long term liability’s

Question 33

Net cash flow

Answer 33

Inflows- outflows

Question 34

Secondary profit

Answer 34

Margin of safety x contribution per unit

Question 35

Punctuality

Answer 35

Deliveries on time / total deliveries x100

Question 36

All profit equations

Answer 36

Question 37

Gearing equation

Answer 37

Non current liabilities / total equity + non- current liabilities x 100

Question 38

Gearing

Answer 38

Question 39

ROCE

Answer 39

Question 40

Capital employed

Answer 40

Total equity + non current liabilities

Question 41

Stock turnover

Answer 41

Question 42

Receivables (debtors) days

Answer 42

Question 43

Payables (creditors) days

Answer 43

Question 44

Exports - imports

Answer 44

Gdp= consumer spending+ investment+ gov spending + i-x

Question 45

Annual rate of return

Answer 45

Average annual profit/ cost of investment (x100)

Question 46

Payables what’s it measured in

Answer 46

Question 47

Avg Cost per unit

Answer 47

Question 48

Liquidity ratio or acid test ratio

Answer 48