finance

Question 1

sales volume calcultaion

Answer 1

sales reveue divied by selling price

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Question 2

interst rate(fixed cost) formual

Answer 2

interest rate percetage times size of loan

Question 3

varibale cost formula

Answer 3

average varible cost per unit times quantitiy produced

Question 4

contribution calcualtion

Answer 4

sellling porce-variable cost per unit

Question 5

break even formula

Answer 5

total fixed costs divied by contribution

Question 6

margin of safety calculation

Answer 6

actual level of output -break rvrn level of output

Question 7

historical figure budgets

Answer 7

finalcial pllan based on past financial data

Question 8

zero based buget

Answer 8

requires justifying every expense from scratch

Question 9

variance analysis

Answer 9

asses differneces between planned finanical outcomes and actual results

Question 10

gross profit

Answer 10

revenue-cost of sales

Question 11

operating profit

Answer 11

gross profit-other operating expenses

Question 12

net profit

Answer 12

operating porift-interest

Question 13

gross profit margin

Answer 13

gross profit divided by revenue times 100

Question 14

what is the diffreence between profit and cash

Answer 14

cash is the amount currently in hand for say to day spending

profit isnt immediate, can be given after long tiem

Question 15

current ratio calcualtion

Answer 15

current assets divided by current libilities

Question 16

acid test ratio

Answer 16

current assets-inventory divided by current liabilties

Question 17

wokring capital

Answer 17

money for day to day spending