Formulas Flashcards

1
Q

Contribution formula

A

Selling price – Variable cost per unit

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2
Q

Margin Of Safety

A

Output-Breakeven Point

Units being produced and sold – Break-even output

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3
Q

Total Revenue

A

Price Per Item x Quantity Sold

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4
Q

Average Variable Costs

A

Total Variable Costs/Output

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5
Q

Total Variable Costs

A

Variable Costs Per Unit x Output

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6
Q

productivity formula

A

output / quantity of input

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7
Q

TOTAL COST

A

TOTAL FIXED COSTS + TOTAL VARIABLE COSTS

AVERAGE COST * OUTPUT

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8
Q

AVERAGE COST (unit cost)

A

TOTAL COST/ TOTAL OUTPUT

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9
Q

Break-even level of production

A

Total fixed costs/ Contribution per unit

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10
Q

net cashflow formula

A

cash inflow-cash outflow

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11
Q

working capital formula

A

current assets - current liability

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12
Q

cost of goods sold formula

A

opening stock + purchase - closing stock

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13
Q

gross profit

A

sales revenue - cost of goods sold

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14
Q

net profit before interest and tax (NBIT)

A

gross profit - expenses

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15
Q

net profit before tax (NBT)

A

NBIT- interest

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16
Q

profit after tax (PAT)

A

NBT- tax

17
Q

retained profits formula

A

PAT - dividends

18
Q

profit

A

sales revenue- cost of making products (total costs)

19
Q

shareholders equity

A

total assets- total liabilities

20
Q

capital employed formula

A

shareholders equity - non current assets

21
Q

shareholders funds formula

A

share capital + retained profits

22
Q

Return on Capital Employed (ROCE)

A

(net profit / capital employed) x 100

23
Q

gross profit margin

A

(gross profit/revenue) x 100

24
Q

net profit margin

A

(net profit/revenue) x100

25
Q

current ratio

A

current assets/current liabilities

26
Q

acid test ratio

A

(current assets - inventories)/current liabilities