Formulae Year 1 Flashcards

1
Q

Profit formula?

A

TR-TC

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2
Q

Profit using break even

A

Total contribution - fixed costs

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3
Q

Revenue formula?

A

Price x Quantity demanded

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4
Q

Total Variable Cost?

A

Unit cost x Quantity demanded

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5
Q

Total Cost?

A

Fixed Cost + Total Variable Costs

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6
Q

Break even

A

Fixed Cost divided by Contribution

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7
Q

Contribution

A

Selling Price - Variable Costs

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8
Q

Market Capitalisation

A

Share price x number of shares

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9
Q

Expected Value (decision trees)

A

Probability x outcome

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10
Q

Net Gain

A

Expected Value - Cost of decision

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11
Q

Market Share

A

Company sales/ total market sales x 100

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12
Q

Market Growth

A

Difference between years/original sales x 100

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13
Q

% growth/decline

A

difference / original x 100

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14
Q

Labour productivity?

A

output per period (units)/number of employees

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15
Q

Capacity utilisation?

A

Actual level of output / Max possible output x 100

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16
Q

Gross profit?

A

Revenue (sales) - Cost of Sales

17
Q

Cost of Sales

A

Opening Stock + Stock purchases - Closing stock

18
Q

Operating profit?

A

Gross profit - operating costs (ie running costs like wages)

19
Q

Profit for the year (net profit)?

A

Operating profit - interest - tax (ie finance costs)

20
Q

Budget variance?

A

Budget - Actual

21
Q

Net Cash Flow

A

Cash in - cash out

22
Q

Margin of Safety?

A

Expected sales - break even

23
Q

Total Contribution?

A

Contribution per unit x number of units sold

24
Q

Net profit margin?

A

Net profit / revenue (or sales ) x 100

25
Gross Profit margin?
Gross Profit / revenue (or sales) x100
26
ROCE (return on capital employed)?
Operating profit / Capital employed x 100
27
Labour turnover?
Number of employees leaving/ total number of employees x 100
28
Labour productivity?
Output per period/number of employees
29
Labour retention?
Number of employees - number leaving / number of employees x 100
30
Labour cost per unit?
labour cost / units produced
31
Employee cost as % of turnover?
Total employee cost/total turnover (sales) x 100