Formulae Flashcards

1
Q

Total costs

A

Total costs= Total fixed costs + Total variable costs

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2
Q

Variable costs

A

Variable costs= Cost of one unit X Quantity produced

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3
Q

Revenue

A

Revenue= Price X Quantity

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4
Q

Break-even point in units

A

Break-even point in units=fixed costs divided by (sales price-variable cost)

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5
Q

Break-even point in costs/ revenue

A

Break-even point in costs/revenue= Break-even point in units X sales price

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6
Q

Margin of safety

A

Margin of safety= actual or budgeted sales- Break-even sales

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7
Q

Interest (on loans) in %

A

Interest= total repayment- borrowed amount divided by borrowed amount X 100

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8
Q

Net cash flow

A

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

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9
Q

Opening balance

A

Opening balance= closing balance of the previous period

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10
Q

Closing balance

A

Closing balance= Opening balance + Net cash flow

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11
Q

Profit

A

Profit/loss= Total revenue- Total costs

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12
Q

Gross Profit

A

Gross profit= sales revenue- cost of sales

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13
Q

Gross profit margin

A

Gross profit margin (%)= Gross Profit divided by sales revenue X 100

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14
Q

Net profit

A

Net profit= Gross profit- other operating expenses and interest

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15
Q

Net profit margin

A

Net profit margin (%)= Net profit divided by sales revenue X 100

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16
Q

Average rate of return

A

Average rate of return (%)= average annual profit (Total profit/No. of years) divided by cost of investment X 100

17
Q

Percentage growth

A

Percentage growth= Increase in size divided by original size X100