formulas

Question 1

market growth (%)

Answer 1

(change in the size of market over a certain period/original size of market) x100

Question 2

market share (%)

Answer 2

(sales of one product or brand or business/total sales in the market) x100

Question 3

market size

Answer 3

number of sales in industry x selling price

Question 4

revenue (sales or turnover)

Answer 4

selling price per unit x number of units sold

Question 5

variable costs (total)

Answer 5

variable cost per unit x number of units sold

Question 6

total costs

Answer 6

fixed costs + variable costs

Question 7

profit

Answer 7

total revenue - total costs

Question 8

contribution per unit

Answer 8

selling price - variable cost per unit

Question 9

break-even output (unit)

Answer 9

fixed costs/contribution per unit

Question 10

margin of safety

Answer 10

actual output - break-even level of output

Question 11

net cash flow

Answer 11

total revenue - total expenses (inflow - outflow)

Question 12

closing balance

Answer 12

opening balance + net cash flow

Question 13

opening balance

Answer 13

the closing balance of the previous month

Question 14

gross profit

Answer 14

revenue - cost of sales

Question 15

net profit

Answer 15

gross profit - total expenses

Question 16

retained profit

Answer 16

net profit - tax and dividends

Question 17

gross profit margin

Answer 17

(gross profit/revenue) x100

Question 18

net profit margin

Answer 18

(net profit/revenue) x100

Question 19

absenteeism (%)

Answer 19

(the total number of staff absence days over the year/total number of working days that should have been worked) x100

Question 20

labour productivity

Answer 20

output over a time period/average number of employees over a period of time

Question 21

labour turnover (%)

Answer 21

(number of staff leaving/average number of staff employed by business) x100

Question 22

added value

Answer 22

price that the product or service is sold at - cost of production

Question 23

labour productivity

Answer 23

output over a time period/number of employees

Question 24

capital productivity

Answer 24

output/capital employed

Question 25

capacity utilisation (%)

Answer 25

(actual output/maximum possible output) x100

Question 26

price elasticity of demand

Answer 26

%change in quantity demanded/%change in price

Question 27

income elasticity of demand

Answer 27

%change in quantity demand/%change in income

Question 28

roce

Answer 28

(operating profit/capital employed) x100

Question 29

variance

Answer 29

budgeted figure - the actual figure