formulas Flashcards
total costs
Fixed costs + Variable costs
profit
Total revenue - Total costs
OR Total contribution - Fixed costs
Total variable costs
Variable cost per unit × Number of units sold
Sales revenue or Turnover
Selling price per unit × Number of units sold
In a decision tree Net gain
Expected value - Initial cost of decision
average costs per unit
Total Production Costs ÷ Total Output (Units)
Net Present Value
Cash flow x Discount Factor (Predicted rate of Inflation)
Average Rate of Return
Net Return (Profit per annum) ÷ Capital Outlay Cost (start cost) x 100
Payback Period
Costs of Project (Investment) ÷ Net Cash Flow Generated x 12
Revenue
Selling Price x Units Sold
Gearing
Non-current Liabilities ÷ (Total Equity + Non-current Liabilities) x 100
Acid Test Ratio
(Current Assets - Inventories) ÷ Current Liabilities
Current Ratio
Current Assets ÷ Current Liabilities
Return On Capital Employed
Operating Profit ÷ (Total Equity + Non-current Liabilities) x 100
Labour Productivity
Output in period (units) ÷ Number of Employees Working
Labour Retention
Staff not leaving per year ÷ Average Number of Staff x 100
Labour Turnover
Number of Employees leaving during the period ÷ Average number employed during the period x 100
Absenteeism
Number of days of unauthorised absence ÷ Total Days worked by workforce over the period x 100
Total Float Time
LFT - EST - Duration of Activity
breakeven
total fixed costs / contribution per unit
capital productivity
output per time period / no. machines
capacity utilisation
actual output / max output x100
productivity
output per time period / input per time period
working capital
current assets - current liabilities
