Formulae

Question 1

Total costs

Answer 1

Total fixed costs + total variable costs

Question 2

Total costs = _________ + total variable costs

Answer 2

Total costs = total fixed costs + total variable costs

Question 3

Variable costs

Answer 3

Cost of one unit × quantity produced

Question 4

_____________ = Cost of one unit × quantity produced

Answer 4

Variable costs = Cost of one unit × quantity produced

Question 5

Revenue

Answer 5

Price × quantity

Question 6

Revenue = _________ × quantity

Answer 6

Revenue = price × quantity

Question 7

Break-even (in units)

Answer 7

Fixed costs ÷ (sales price - variable costs)

Question 8

Break-even (in units) = Fixed costs ÷ (sales price - ___________)

Answer 8

Break-even (in units) = Fixed costs ÷ (sales price - variable costs)

Question 9

Break-even (in costs/revenue)

Answer 9

Break-even point in units × sales price

Question 10

Break-even (_________) = Break-even point in units × sales price

Answer 10

Break-even (in costs/revenue) = Break-even point in units × sales price

Question 11

Margin of safety

Answer 11

Actual/budgeted sales - break-even

Question 12

_________ = Actual/budgeted sales - break-even

Answer 12

Margin of safety = Actual/budgeted sales - break-even

Question 13

Interest (on loans) in %

Answer 13

((total repayment - borrowed amount) ÷ borrowed amount) × 100

Question 14

((total repayment - borrowed amount) ÷ borrowed amount) × 100

Answer 14

Interest (on loans) in %

Question 15

Net cash flow

Answer 15

Cash inflows (receipts) - cash outflows in a given period (payments)

Question 16

Net cash flow = Cash ______ (receipts) - cash ______ in a given period (payments)

Answer 16

Net cash flow = Cash inflows (receipts) - cash outflows in a given period (payments)

Question 17

Opening balance

Answer 17

Closing balance of the previous period

Question 18

Closing balance

Answer 18

Opening balance + net cash flow

Question 19

Profit / loss

Answer 19

Total revenue - total costs

Question 20

Gross profit

Answer 20

Sales revenue - cost of sales

Question 21

______ = Sales revenue - cost of sales

Answer 21

Gross profit = Sales revenue - cost of sales

Question 22

Gross profit margin (%)

Answer 22

(net profit ÷ sales revenue) × 100

Question 23

Gross profit margin (%) = (______________) × 100

Answer 23

Gross profit margin (%) = (net profit ÷ sales revenue) × 100

Question 24

Net profit

Answer 24

Gross profit - other operating expenses and interest

Question 25

Net profit = Gross profit - ____________________

Answer 25

Net profit = Gross profit - other operating expenses and interest

Question 26

Net profit margin (%)

Answer 26

((Net profit ÷ sales revenue) × 100

Question 27

Net profit margin = ((________________) × 100

Answer 27

Net profit margin = ((Net profit ÷ sales revenue) × 100

Question 28

Average rate of return (%)

Answer 28

((average annual profit (total profit/ no. Of years) ÷ cost of investment) × 100

Question 29

Average rate of return = (_____________________) × 100

Answer 29

Average rate of return = ((average annual profit (total profit/ no. Of years) ÷ cost of investment) × 100

Question 30

Percentage growth

Answer 30

((increase in size ÷ original size) × 100

Question 31

_____________ = ((increase in size ÷ original size) × 100

Answer 31

Percentage growth = ((increase in size ÷ original size) × 100