Formula Flashcards
Total Costs =
= fixed costs + variable costs
Variable Costs =
= cost of one unit X quantity produced
Revenue =
= price X quantity
Break - even point =
= fixed costs / (sales price per unit - variable cost per unit)
Margin of Safety =
= actual sales - break-even sales
Interest ( on loans) %=
= ((total repayment - borrowed amount) / borrowed amount )X 1oo
Net Cash Flow
= inflows - outflows
Opening Balance =
= closing balance of previous month
Closing Balance =
= opening balance + net cash flow
Profit =
= total revenue - total costs
Gross Profit =
= sales revenue - cost of sales
Gross Profit Margin (%) =
= (gross profit / sales revenue) X 100
Net Profit =
= gross profit - other operating expenses
Net Profit Margin (%) =
= (net profit/sales revenue) X 100
ARR (%) =
= (average annual profit / cost of investment) X 100
Average Annual Profit =
= total profit / number of years
Percentage Growth =
= (increase in size / original size) X 100
name the methods of measuring labour effectiveness
staff productivity , staff turnover and absenteeism
staff productivity =
= output / number of workers
labour cost per unit =
= total labour costs / number of units produced
labour/ staff turnover =
= (number of staff leaving /total number of staff) x100
absenteeism=
=(total number of staff absent/ number of staff days worked) x100
or
(number of days absent/ number of working days) x100
capacity utilisation
(actual output per month/ maximum possible out put per month) x100
