Formulas

Question 1

Market growth (%)

Answer 1

Change in size of market over a period / original size of market
x 100

Question 2

Market Share (%)

Answer 2

Sales / Total sales in market

x 100

Question 3

Market size

Answer 3

Sales in industry x Selling price

Question 4

Revenue

Answer 4

Selling price per unit x Units sold

Question 5

Variable costs

Answer 5

Variable cost per unit x 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 (units)

Answer 9

Fixed costs / Contribution per unit

Question 10

Margin of safety

Answer 10

Actual level of output - Break-even level of output

Question 11

Net cash flow

Answer 11

Revenue - Expenses

Inflows - outflows

Question 12

Closing balance

Answer 12

Opening balance + Net cash flow

Question 13

Opening balance

Answer 13

Previous closing balance

Question 14

Gross profit

Answer 14

Revenue - Cost of sales (direct costs)

Question 15

Net profit

Answer 15

Gross profit - Total expenses (indirect costs)

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

x 100

Question 19

Absenteeism (%)

Answer 19

Total start absence days over a 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 time period

Question 21

Labour turnover (%)

Answer 21

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

x 100

Question 22

Added value

Answer 22

Price product or service is sold at - cost of production

Question 23

Capital productivity

Answer 23

Output / Capital employed

Question 24

Capacity utilisation (%)

Answer 24

Actual output / Maximum possible output

x 100

Question 25

Index number for any time period

Answer 25

Value in period / Value in base period

x 100

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 demanded / % change in income

Question 28

3 point moving average

Answer 28

Month A + Month B + Month C / 3

Question 29

Variance

Answer 29

Budgeted figure - Actual figure

Question 30

Working capital

Answer 30

Current assets - Current liabilities

Question 31

Capital employed

Answer 31

Share capital + Retained earnings + Long-term borrowings

Question 32

Depreciation

Answer 32

Original cost of fixed asset / Useful life of the asset

Question 33

Depreciated (Straight line method)

Answer 33

Historical cost - Residual value / Useful life of asset

Question 34

Return on capital employed (ROCE)

Answer 34

Operating profit / Capital employed

x 100

Question 35

Current ratio

Answer 35

Current assets / Current liabilities

Question 36

Acid test ratio

Answer 36

Current assets - stock / Current liabilities

Question 37

Gearing ratio

Answer 37

Non-current liabilities / Capital employed

x 100

Question 38

Earliest Start Time (EST)

Answer 38

EST of previous activity + Duration of previous activity

Question 39

Latest Finish Time

Answer 39

LFT at the end of following activity - Duration of following activity

Question 40

Float time

Answer 40

LFT at end of task - Duration if task - EST at start of task