Formulas

Question 1

Labour cost per unit

Answer 1

Labour/ Units of Output

Question 2

Employee Retention Rate

Answer 2

(No. Of employees who remained in the business / no. Of employees at the start of the period) x100

Question 3

Net gain

Answer 3

Expected value - initial cost of decision

Question 4

Expected value of a decision with two possible outcomes

Answer 4

(Pay off of decision A x probability of A)+(Pay off of decision B x probability of B)

Question 5

Added Value

Answer 5

Sales Revenue - costs of bought in goods and services

Question 6

Capacity utilisation

Answer 6

(Actual level of output/ maximum possible output) x100

Question 7

Return on investment

Answer 7

(Profit from the investment/ cost of investment) x100

Question 8

Variance

Answer 8

Budgeted variance - actual variance

Question 9

Net cash flow

Answer 9

Total inflows - Total outflows

Question 10

Closing Balance

Answer 10

Opening balance + net cash flow

Question 11

Gross profit margin

Answer 11

(Gross Profit/ revenues) x100

Question 12

Operating profit margin

Answer 12

(Operating Profit/ revenues) x100

Question 13

Percentage change

Answer 13

(Change/ original) x100

Question 14

Contribution per unit

Answer 14

Selling price per unit - variable cost per Unit

Question 15

Break-even output

Answer 15

Fixed cost/ contribution per unit

Question 16

Price elasticity of demand

Answer 16

% change in quantity demanded/ % change in price

Question 17

Income elasticity of demand

Answer 17

% change in quantity demanded/ % change in income

Question 18

Absent Rate

Answer 18

(Number of days for unauthorised absence/ total days worked by the workforce) x100

Question 19

Labour productivity

Answer 19

Output per period/ number of employees at work

Question 20

Unit costs

Answer 20

Total production costs in a period/ total output in a period

Question 21

Profit

Answer 21

Total revenue - Total costs

Question 22

Total revenue

Answer 22

Price x Quantity sold

Question 23

Market growth

Answer 23

(Change in market size/ origional market size) x100

Question 24

Market share

Answer 24

(Sales of x/ total sales in a whole market) x100

Question 25

Labour turnover

Answer 25

(Number off staff leaving/ number of staff employed by a business) x100

Question 26

Gross profit

Answer 26

Revenue-cost of sales

Question 27

Operating profit

Answer 27

Gross profit-operating expenses

Question 28

Profit for the year

Answer 28

(Operating profit + profit from other activities) - (net finance costs-tax)

Question 29

Employees retention rate

Answer 29

(Number of employees who remained with the business for the whole period of time/ number of employees at the start of the time period) x100

Question 30

Labour costs per unit

Answer 30

Labour cost/ unit of output