formulas

Question 1

revenue

Answer 1

selling price per unit x number of units sold

Question 2

variable costs

Answer 2

variable clot per unit x quantity units sold

Question 3

total costs

Answer 3

fixed + variable costs

Question 4

profit

Answer 4

total revenue - total costs
total contribution - fixed costs

Question 5

market capitailisation

Answer 5

number of issues shared x current share price

Question 6

expected value of a decision with two possible outcomes

Answer 6

(pay off A x probability7 of A) + (pay off B x probability of B)

Question 7

net gain

Answer 7

expected value - initial cost of decision

Question 8

market growth (%)

Answer 8

(change in size of market over a period / original size of the market)
x 100

Question 9

market share (%)

Answer 9

sales of one product or brand or business / total sales in the market
x 100

Question 10

added value

Answer 10

sales revenue - costs of brought-in good and services

Question 11

labour productivity

Answer 11

output over a time period / number of employees

Question 12

unit costs (average costs)

Answer 12

total costs / number of units outputs

Question 13

capacity utilisation %

Answer 13

actual output / maximum possible output

Question 14

return on investment

Answer 14

profit from the investment / cost of investment
x 100

Question 15

gross profit

Answer 15

revenue - cost of sales

Question 16

profit from operations

Answer 16

gross profit - operating expenses

Question 17

profit for a year

Answer 17

operating profit + profit from other activities - net finance costs - tax

Question 18

gross profit margin

Answer 18

gross profit / revenue
x100

Question 19

operating profit margin

Answer 19

operating profit / revenue
x 100

Question 20

profit for year margin

Answer 20

profit for year / revenue
x 100

Question 21

variance

Answer 21

budgeted figure - actual figure

Question 22

contribuion per unit

Answer 22

selling price - variable cost per unit

Question 23

total contribution

Answer 23

contribution per unit x units sold
total revenue - total variable costs

Question 24

break even output

Answer 24

fixed costs / contribution per unit

Question 25

margin of safety

Answer 25

actual level of output - break even level of output

Question 26

labour turnover

Answer 26

number of staff leaving / number of staff employed
x100

Question 27

employee costs as percentage of turnover

Answer 27

employee costs / turnover
x 100

Question 28

labour costs per unit

Answer 28

labour costs / units of output

Question 29

return on capital employed

Answer 29

operating profit / (total equity + non-current liabilities)
x 100

where total equity + non-current liabilities = capital employed

Question 30

current ratio

Answer 30

current assets / current liabilities

Question 31

gearing %

Answer 31

non-current liabilities / total equity + non-current liablilities
x 100

where total equity + non-current liabilities = capital employed

Question 32

payables days

Answer 32

payables / cost of sales
x 365

Question 33

receivables days

Answer 33

receivables / cost of sales
x 365

Question 34

inventory turnover

Answer 34

cost of sales / average inventories held

Question 35

average rate of return

Answer 35

average annual return / initial cost of profit
x 100