Formulae Flashcards
1
Q
Total costs
A
Total fixed costs+ Total variable costs
2
Q
Revenue
A
Price x Quantity
3
Q
Break Even
A
Fixed costs ÷ (sales price- variable cost per unit)
4
Q
Margin of Safety
A
Actual or budgeted sales- break even sales
5
Q
Interest
A
total repayment- borrowed amount÷ borrowed amount x 100
6
Q
Net cash flow
A
Cash inflows- cash outflows in a given period
7
Q
Opening and Closing balance
A
Opening balance= closing balance of the previous period
8
Q
Closing balance
A
Opening balance+ Net cash flow
9
Q
Gross Profit
A
Sales revenue- Cost of sales
10
Q
Gross profit Margin
A
Gross profit ÷ Sales revenue x 100
11
Q
Net profit
A
Gross profit- Other operating expenses and interest
12
Q
Net profit margin
A
Net profit ÷ Sales revenue x 100
13
Q
Average rate of return
A
Average annual profit ÷ Cost of investment x 100
