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AQA A Level Business Studies > Formulae and Key Data > Flashcards

Formulae and Key Data Flashcards

1
Q

Total costs

A

Fixed costs + Variable costs

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2
Q

Profit

A

Total revenue - Total costs

Total contribution - Fixed costs

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3
Q

Total variable costs

A

Variable cost per unit x Number of units sold

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4
Q

Sales revenue/Turnover

A

Selling price per unit * Number of units sold

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5
Q

Market capitalisation of a business

A

Number of issued shares * Current share price

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6
Q

Net gain in a Decision Tree

A

Expected value - Initial cost of decision

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7
Q

Expected value of a decision

A

Pay-off of the decision * probability

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8
Q

Total expected value

A

All expected values of a decision path, such that the probability of those expected values all add up to one.

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9
Q

Market size volume

A

Quantity of goods produced in a particular market over a period of time, usually one year

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10
Q

Market size

A

The total sales revenue generated from selling all goods and services produced in a particular market over a period of time, usually one year.

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11
Q

Sales volume

A

Quantity of goods and services produced by a particular business over a period of time

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12
Q

Sales value

A

Total sales revenue over a period of time

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13
Q

Market growth (%) in year (X)

A

Change in the size of the market in year X/ Size of market in the year before X

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14
Q

Sales growth (%) in year (X)

A

Change in sales of products in year X/Sales of product in the year before X

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15
Q

Market share (%)

A

Sales of product/Total sales in the market

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16
Q

Price elasticity of demand

A

Percentage change in quantity demanded/ Percentage change in price

-1 <= PED <= 0 - Price inelastic
PED < -1 - Price elastic

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17
Q

Added value (value added)

A

Sales revenue - cost of bought-in goods

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18
Q

Labour productivity

A

Output per time period/ Number of employees

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19
Q

Unit cost (average costs)

A

Total costs of production/ number of units of output produced

20
Q

Capacity utilisation (%)

A

Actual output in a given time period/ max potential output in a given time period *100

21
Q

Return on investment (%)

A

Return on investment (£)/ Cost of investment (£) * 100

22
Q

Gross profit

A

Sales Revenue - Cost of sales

23
Q

Operating Profit

A

Gross Profit - Operating Costs

24
Q

Profit for the Year

A

Operating Profit - Net costs - Tax

25
Q

Variance

A

The difference between the actual figure and budgeted figure. This can apply to both costs aned profits

A favourable variance would result in higher profits than the budgeted figure.
An adverse variance would reflect that the profit is lower than the budget

26
Q

Contribution per unit

A

Selling price - Variable costs per unit

27
Q

Total contribution

A

Contribution per unit * Units produced or sold
OR
Revenue - Variable costs

28
Q

Break-even output

A

Fixed costs / Contribution per unit

29
Q

How do you find the break-even output on a chart?

A

It is the point in which Total Revenue equals Total Costs

30
Q

How do you find the level of profit?

A

The level of profit at a given output is the vertical distance between the total revenue and total cost line

31
Q

Margin of safety

A

Actual level of output - Breakeven level of output

32
Q

Gross profit margin (%)

A

Gross profit / Sales revenue *100

33
Q

Operating profit margin (%)

A

Operating profit/ Sales revenue * 100

34
Q

Profit for the year margin (%)

A

Profit for the year/Sales revenue * 100

35
Q

Labour turnover (%)

A

Number of staff leaving during the year / Average number of staff employed by the business

36
Q

Employee retention rate (%) for a time period

A

Number of staff leaving during the year/ Average number of staff employed by the business during the year

37
Q

Employee costs as a percentage of turnover

A

Employee costs/ Sales turnover * 100

38
Q

Labour cost per unit

A

Labour costs/ Units of output

39
Q

ROCE/ Return on Capital Employed

A

Operating profit * 100 / Total equity + non-current liabilities

OR
Operating profit/capital employed * 100

40
Q

Capital employed

A

Total equity + non-current liabilities

41
Q

Current ratio

A

Current assets / Current liabilities

42
Q

Gearing (%)

A

Non-current liabilities 100 / Capital employed
OR
Non-current liabilities100/Total equity + non-current liabilities

43
Q

Payables days

A

Payables*365/ Cost of sales

Payables = creditors

44
Q

Receivable days

A

Receivables *365/ Sales revenue

Receivables = debtors

45
Q

Inventory turnover

A

Cost of goods sold/ Average inventories held

46
Q

Average rate of return

A

Net return over a period or time or from something specific/Cost of the project or cost over time.

AQA A Level Business Studies (1 decks)

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