Equations Flashcards
1
Q
Gross profit
A
Revenue - cogs
2
Q
Gross profit margin
A
Revenue - cogs / revenue x 100
3
Q
COGS equation
A
Opening inventories + purchases - closing inventories
4
Q
Mark up equation
A
( GrossProfit /cost ) x 100
5
Q
Liquid capital ratio equation
A
Current assets-inventory / current liabilities
6
Q
Trade payable equation
A
Trade payable / credit purchases x365
7
Q
Fixed cost equation
A
Selling price per unit - variable cost per unit
8
Q
Margin of safety
A
(sales )Output - break even output
9
Q
Contribution per unit
A
Selling price per unit - variable cost
10
Q
Profit Margin equation ( point at which revenue exceeds costs )
A
Profit / revenue x 100
