EQUATIONS Flashcards
theme 2
1
Q
total costs
A
fixed costs + variable costs
2
Q
sales revenue
A
selling price x quantity sold
3
Q
sales volume
A
sales revenue / selling price per unit
4
Q
closing balance
A
opening balance + net cash flow
5
Q
net cash flow
A
cash inflows - cash outflows
6
Q
fixed costs
A
total costs - variable costs
7
Q
total variable costs
A
total costs - fixed costs
8
Q
contribution per unit
A
selling price - variable costs per unit
9
Q
break-even point
A
fixed costs / contribution per unit
10
Q
margin of safety
A
actual output - break even output
11
Q
variance analysis
A
budgeted figure - actual figure
12
Q
gross profit
A
sales revenue - cost of sales
13
Q
cost of sales
A
opening stock + purchases - closing stock
14
Q
operating profit
A
gross profit - expenses
15
Q
net profit
A
operating profit - interest and tax
