EQUATIONS Flashcards
theme 2
total costs
fixed costs + variable costs
sales revenue
selling price x quantity sold
sales volume
sales revenue / selling price per unit
closing balance
opening balance + net cash flow
net cash flow
cash inflows - cash outflows
fixed costs
total costs - variable costs
total variable costs
total costs - fixed costs
contribution per unit
selling price - variable costs per unit
break-even point
fixed costs / contribution per unit
margin of safety
actual output - break even output
variance analysis
budgeted figure - actual figure
gross profit
sales revenue - cost of sales
cost of sales
opening stock + purchases - closing stock
operating profit
gross profit - expenses
net profit
operating profit - interest and tax
gross profit margin
gross profit / sales revenue x 100
operating profit margin
operating profit / sales revenue x 100
net profit margin
net profit / sales revenue x 100
current ratio
current assets / current liabilities
acid test ratio
liquid assets / current liabilities
working capital
current assets - current liabilities
capacity utilisation
actual output / maximum output x 100
acid test ratio
liquid assets : current liabilities
adverse variance
budgeted figure - actual figure
break-even analysis
total costs = total revenue
break-even point
fixed costs / contribution per unit
contribution
selling price - variable cost per unit
current ratio
current assets : current liabilities
favourable variance
budgeted figure - actual figure
gross profit
sales revenue - cost of sales
profit
total revenue - total cost
market size
number of units sold x price
