FORMULA

Question 1

net cash flows

Answer 1

total inflows - total outflows

Question 2

sales volume

Answer 2

total number of units sold over a period of time

Question 3

sales revenue

Answer 3

number of units sold x unit price

Question 4

total variable costs

Answer 4

number of units sold x variable cost per unit

Question 5

total costs

Answer 5

fixed costs + variable costs

Question 6

contribution per unit

Answer 6

selling price per unit - variable cost per unit

Question 7

total contribution

Answer 7

contribution per unit x number of units sold

Question 8

break even

Answer 8

fixed costs / contribution per unit

Question 9

variance

Answer 9

actual - budget

Question 10

gross profit

Answer 10

sales revenue - cost of sales

Question 11

operating profit

Answer 11

gross profit - overheads

Question 12

net profit

Answer 12

operating profit +/- finance costs

Question 13

gross profit margin

Answer 13

(gross profit / sales revenue) x100

Question 14

operating profit margin

Answer 14

(operating profit / sales revenue) x 100

Question 15

profit for the year margin

Answer 15

(profit for the year / sales revenue) x 100

Question 16

current ratio

Answer 16

current assets/ current liabilities

Question 17

acid test ratio

Answer 17

(current assets - stock) / current liabilities

Question 18

productivity

Answer 18

output per period (units) / number of employees in that period

Question 19

capacity utilisation

Answer 19

(actual level of output / maximum possible level of output) x 100

Question 20

market share

Answer 20

(sales of a product or business / total market sales) x 100

Question 21

price elasticity of demand

Answer 21

% change in quantity demanded / % change in price

Question 22

income elasticity of demand

Answer 22

% change in quantity demanded / % change in income

Question 23

debt to equity ratio

Answer 23

debt / equity x 100

Question 24

gearing ratio

Answer 24

non-current liabilities / total equity + NCL x100

Question 25

ROCE

Answer 25

operating profit / total equity + NCL x100

Question 26

labour turnover

Answer 26

N0 of employees leaving / number of people employed in a period x100

Question 27

absenteeism

Answer 27

n0 of staff absent / n0 of staff employees during period x100

Question 28

ARR

Answer 28

average annual profit/initial investment x100

Question 29

Net present value NPV

Answer 29

cash inflow x discount factor

Question 30

payback period

Answer 30

number of full years + (amount left / amount paid in final year) / 12 or 365

Question 31

critical path

Answer 31

LFT - DURATION - EST

Question 32

S of Financial position Balance sheet

Answer 32

NCA + CA-CL-NCL = Net Assets = SC + reserves.

Question 33

statement of comprehensive income

Answer 33

revenue - COS - overheads +/- costs or income - tax = profit for the year.