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BUSINESS STUDIES > formulas > Flashcards

formulas Flashcards

1
Q

added value formula

A

Selling price - the cost of bought materials, services = added value

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2
Q

total costs formula

A

total costs = variable + fixed costs

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3
Q

profit formula

A

profit = total revenue - total costs

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4
Q

revenue forumla

A

revenue = price x quantity sold.

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5
Q

added value (transformation process) equation

A

selling price - cost of bought materials

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6
Q

market capitalisation formula

A

share price x no. shares = market capitalisation

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7
Q

dividend yield equation

A

dividend per share / share price (X100)

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8
Q

decision tree: expected value formula

A

Probability of outcome x estimated financial outcome

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9
Q

market share formula

A

Sales of business / Entire sales in market X100

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10
Q

Market growth formula

A

Old sales - New sales X100

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11
Q

Income elasticity of demand (YED) equation

A

YED = % change in demand / % change in income

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12
Q

Price elasticity of demand (PED) formula

A

PED = % change in demand / % change price
above 1 = elastic good (changes)
below 1 = inelastic goof
1 = unitary good ( rare )

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13
Q

Unit cost formula

A

Unit costs = total costs / total units

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14
Q

Quality formula ( terms of deliveries )

A

deliveries on time / total deliveries X100

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15
Q

Capacity utilisation formula

A

Actual level of output / max possible output X100

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16
Q

Labour productivity formula

A

output per period / no. employees = x units per employee

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17
Q

Lead time equation

A

(days between) Order made - order recieved

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18
Q

reorder level formula ( inventory control chart)

A

(lead time x av. daily usage) + Buffer stock = reorder level

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19
Q

Profit formula in terms of contribution

A

Contribution - fixed costs = profit

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20
Q

Break-even formula

A

Fixed costs / contribution per unit = BE (units)

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21
Q

margin of safety formula (breakeven analysis)

A

MOS = Actual output - breakeven output

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22
Q

Net cash flow formula

A

Inflows - outflows = Net CF

23
Q

return on investment formula

A

(Operating profit x100) / capital invested

24
Q

Variable costs formula

A

Cost per unit x total no. units = variable costs

25
Q

Contribution per unit formula

A

Contribution per unit = Selling price - variable costs per unit

26
Q

Total contribution formula (terms of revenue and costs)

A

Total revenue - Total variablecosts

27
Q

Total contribution formula

A

Cont per unit x no. units sold = T contribution

28
Q

Profit for the year margin formula

A

PFTY/Revenue x 100

29
Q

Operating profit margin formula

A

OP/Revenue x 100

30
Q

Gross profit margin formula

A

GP/revenue x 100

31
Q

Gross profit formula

A

Revenue - direct costs (costs of sales) = GP

32
Q

Operating profit formula

A

Gross profit - indirect (operating/overheads)costs = Op prof

33
Q

profit for the year formula

A

(Op profit + other profits)- taxation - net finance costs = PFTY

34
Q

Market capitalisation formula

A

No. shares sold x share price = Market cap

35
Q

Market share formula

A

Sales revenue / total market revenue x100 (over same period)

36
Q

Price elasticity of demand (PED) formula

A

% change in price / % change in demand x100

37
Q

Income elasticity of demand (YED) formula

A

% change in income / % change in demand x100

38
Q

Labour turnover (%) formula

A

Number of staff leaving/total number of staff
X100

39
Q

Employee retention rate formula

A

No. employees who remained in period/ number of employees at start of period.

40
Q

Employee costs as a percentage of turnover formula

A

Employee costs/turnover X100

41
Q

labour costs per unit formula

A

labour costs/units of output

42
Q

ROCE formula (return on capital employed %)

A

OP/ T capital employed X100

43
Q

Capital employed formula

A

T equity + NC liabilities

44
Q

Working capital (Net current assets) formula

A

Current assets - current liabilities

45
Q

Net assets formula

A

T Assets - T liabilities

46
Q

Capital employed formula

A

T equity + NC liabilities

47
Q

Total assets formula

A

Current assets + Non-current assets

48
Q

Earnings per share formula

A

Profit for period/number of shares

49
Q

Current ratio formula

A

Current assets / Current liabilities : 1
x :1

50
Q

Gearing ratio formula

A

Non current liabilities / T equity + Non current liabilities

51
Q

payables days formula

A

trade payables / cost of sales X100

52
Q

receivables days formula

A

trade receivables / revenue X365

53
Q

market growth (%) formula

A

Change in size of a market over a period/original size of the market X100

54
Q

Return on investment (%) formula

A

Profit from investment/cost of the investment X100

BUSINESS STUDIES (8 decks)

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