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Business equations > equations > Flashcards

equations Flashcards

1
Q

break even

A

fixed costs/ contribution

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2
Q

contribution

A

selling price- variable costs

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3
Q

closing balance

A

opening balance- net cash flow

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4
Q

net cash flow

A

cash inflows- cash outflows

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5
Q

net profit

A

sales- total cost

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6
Q

PED

A

percentage change in quantity demanded/ percentage change in price

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7
Q

YED

A

percentage change in quantity demanded/ percentage change in income

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8
Q

labour productivity

A

output (per time period)/ number of employees (per price period)

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9
Q

market capitalisation

A

market price of share X shared issued

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10
Q

capacity utilisation

A

actual output/ maximum output X100

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11
Q

average unit cost

A

total cost /number of units of output

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12
Q

market growth

A

market size (year 2)- market size (year 1)/ market size (year 1) X100

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13
Q

sales growth

A

sales (year 2)- sales (year 1)/ sales (year 1) X100

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14
Q

market shares

A

sales of business/ total market share X100

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15
Q

revenue

A

selling price X quantity sold

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16
Q

variable cost

A

output X variable cost per unit

17
Q

total costs

A

fixed cost + variable cost

18
Q

fixed cost

A

add together all the fixed costs

19
Q

profit and loss

A

total revenue- total costs

20
Q

expected value of decision with 2 possible outcomes

A

(pay off A X probability of A) + (pay off B X probability of B)

21
Q

percentage change

A

difference (new-old) / original X100

22
Q

margin of safety

A

current output - breakeven point of sales

23
Q

gross profit

A

revenue - cost of sales

24
Q

cost of sales

A

opening stock + purchases - closing sales

25
Q

operating profit

A

gross profit - operating expenses

26
Q

profit for the year

A

operating profit + profit from other activities- net finance costs- tax

27
Q

gross profit margin

A

gross profit / revenue X100

28
Q

operating profit margins

A

operating profit / revenue X100

29
Q

profit for the year margin

A

operating profit / revenue X100

30
Q

revenue per employee

A

employee costs / revenue X100

31
Q

labour costs per unit

A

wage costs / output

32
Q

return on capital employed formula

A

net profit / capital employed X 100

33
Q

current ratio

A

current assets / current liabilities

34
Q

gearing

A

long-term liabilities/ (shareholder funds + long term liabilities) X 100

35
Q

shares

A

market capitalisation / share price

36
Q

return on investment

A

return on investment £ / cost of the investment £ X 100

Business equations (1 decks)

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