Equations Flashcards
1
Q
Total costs
A
Fixed costs + Variable costs
2
Q
Unit costs
A
Total cost / output
3
Q
Contribution per unit
A
Price - variable costs
4
Q
Break even
A
Fixed costs / contribution
5
Q
Margin of safety
A
Actual sales - break even sales
6
Q
Average rate of return
A
(Annual average profit / cost of investment) x 100
7
Q
Net cash flow
A
Total inflows - total outflows
8
Q
Gross profit
A
Sales revenue - cost of sales
9
Q
Operating profit
A
Gross profit - Expenses
10
Q
Profit before tax
A
Operating profit - finance costs
11
Q
Retained profit
A
Net profit - tax and dividends
12
Q
Working capital
A
Current assets - current liabilities
13
Q
Net assets
A
Total assets - Current liabilities - non-current liabilities
14
Q
Straight line depreciation
A
(Initial costs - residual value) / life of asset
15
Q
Current ratio
A
Current assets / current liabilities
