Formula Flashcards
1
Q
Acid test ratio
A
Current assets / current liabilities - stock
2
Q
Adverse variance
A
Budget figure - actual figure
3
Q
Break even analysis
A
Total costs = total revenue
4
Q
Break even point
A
Fixed costs / contribution (per unit)
5
Q
Capacity utilisation
A
Actual output / maximum output x 100
6
Q
Contribution
A
Selling price - variable cost (per unit)
7
Q
Current ratio
A
Current assets / current liabilities
8
Q
Favourable variance
A
Budget figure - actual figure
9
Q
Gross profit
A
Sales revenue - cost of sales
10
Q
Gross profit margin
A
Gross profit / revenue x100
11
Q
Margin of safety
A
Actual output -break even
12
Q
Market size
A
Number of units sold x price
13
Q
Operation profit
A
Gross profit - expenses
14
Q
Profit
A
Total revenue - total costs
15
Q
Profit for the year
A
Operation profit - interest & tax
