Formulae Flashcards
Total costs
Total fixed costs + total variable costs
Total costs = _________ + total variable costs
Total costs = total fixed costs + total variable costs
Variable costs
Cost of one unit × quantity produced
_____________ = Cost of one unit × quantity produced
Variable costs = Cost of one unit × quantity produced
Revenue
Price × quantity
Revenue = _________ × quantity
Revenue = price × quantity
Break-even (in units)
Fixed costs ÷ (sales price - variable costs)
Break-even (in units) = Fixed costs ÷ (sales price - ___________)
Break-even (in units) = Fixed costs ÷ (sales price - variable costs)
Break-even (in costs/revenue)
Break-even point in units × sales price
Break-even (_________) = Break-even point in units × sales price
Break-even (in costs/revenue) = Break-even point in units × sales price
Margin of safety
Actual/budgeted sales - break-even
_________ = Actual/budgeted sales - break-even
Margin of safety = Actual/budgeted sales - break-even
Interest (on loans) in %
((total repayment - borrowed amount) ÷ borrowed amount) × 100
((total repayment - borrowed amount) ÷ borrowed amount) × 100
Interest (on loans) in %
Net cash flow
Cash inflows (receipts) - cash outflows in a given period (payments)
Net cash flow = Cash ______ (receipts) - cash ______ in a given period (payments)
Net cash flow = Cash inflows (receipts) - cash outflows in a given period (payments)
Opening balance
Closing balance of the previous period
Closing balance
Opening balance + net cash flow
Profit / loss
Total revenue - total costs
Gross profit
Sales revenue - cost of sales
______ = Sales revenue - cost of sales
Gross profit = Sales revenue - cost of sales
Gross profit margin (%)
(net profit ÷ sales revenue) × 100
Gross profit margin (%) = (______________) × 100
Gross profit margin (%) = (net profit ÷ sales revenue) × 100
Net profit
Gross profit - other operating expenses and interest
Net profit = Gross profit - ____________________
Net profit = Gross profit - other operating expenses and interest
Net profit margin (%)
((Net profit ÷ sales revenue) × 100
Net profit margin = ((________________) × 100
Net profit margin = ((Net profit ÷ sales revenue) × 100
Average rate of return (%)
((average annual profit (total profit/ no. Of years) ÷ cost of investment) × 100
Average rate of return = (_____________________) × 100
Average rate of return = ((average annual profit (total profit/ no. Of years) ÷ cost of investment) × 100
Percentage growth
((increase in size ÷ original size) × 100
_____________ = ((increase in size ÷ original size) × 100
Percentage growth = ((increase in size ÷ original size) × 100
