Formulas Flashcards
1
Q
Margin of safety
A
Actual/ budgeted– BE point
2
Q
Breakeven point
A
Fixed costs// selling price-variable costs
3
Q
Net cash flows
A
Inflows- outflows
4
Q
Revenue
A
selling price x units sold
5
Q
Total costs
A
Fixed costs + variable costs
6
Q
Profit or loss
A
Revenue - total costs
7
Q
Gross profit
A
Revenue - cost of sales
8
Q
Net profit
A
Gross profit - expenses
9
Q
Gross profit margin
A
Gross profit/ sales revenue x 100
10
Q
Net profit margin
A
Net profit/ sales revenue x 100
11
Q
Average rate of return
A
average annual profit (total profit/ number of years) // cost of investment x 100
