FORMULAS Flashcards
1
Q
how do you work out percentage change
A
new - old / old x100
2
Q
profit
A
total revenue- total costs
3
Q
revenue
A
sppu x output
4
Q
total variable costs
A
vcpu x output
5
Q
total costs
A
tvc + fc
6
Q
net cash flow
A
inflows- outflows
7
Q
opening balance
A
closing balance from previous month
8
Q
closing balance
A
opening balance+ net cash flow
9
Q
capacity utilisation
A
current output / maximum output x100
10
Q
break even output
A
fixed cost/ cpu (contribution per unit)
11
Q
total contribution
A
cpu ( sppu- vcpu) x output
12
Q
margin of safety
A
actual output- break even output
13
Q
variance
A
difference between budgeting and actual figures
- adverse or favourable
- adverse- bad for business eg. costs higher than budgeted
- favourable- good for business eg. profit higher than budgeted
14
Q
gross profit margin
A
gross profit/ revenue x100
15
Q
operating profit margin
A
operating profit / revenue x100
