Equations Flashcards
1
Q
Break even
A
Fixed cost
—
2
Q
Margin of safety
A
Actual output - breakeven output
3
Q
Revenue
A
Price x quantity
4
Q
Total costs
A
Fixed costs + variable costs
5
Q
Working capital
A
Current assets - current liabilities
6
Q
Closing balance
A
Opening balance + inflows - outflows
7
Q
Contribution
A
Selling price - variable costs
8
Q
Profit
A
Margin of safety x contribution
9
Q
Net profit
A
Gross profit - expenditure
10
Q
Gross profit
A
Revenue - costs of sales
11
Q
Costs of sales
A
Opening stock + purchased - closing stock
12
Q
Straight line method
A
Asset price - residual value
—
13
Q
Reducing balance
A
(10%)
14
Q
Opening balance
A
It is the money you have at the start of the month (closing balance of previous month)
15
Q
Net inflow
A
Inflow - outflow
