Formulas Flashcards
Labour cost per unit
Labour/ Units of Output
Employee Retention Rate
(No. Of employees who remained in the business / no. Of employees at the start of the period) x100
Net gain
Expected value - initial cost of decision
Expected value of a decision with two possible outcomes
(Pay off of decision A x probability of A)+(Pay off of decision B x probability of B)
Added Value
Sales Revenue - costs of bought in goods and services
Capacity utilisation
(Actual level of output/ maximum possible output) x100
Return on investment
(Profit from the investment/ cost of investment) x100
Variance
Budgeted variance - actual variance
Net cash flow
Total inflows - Total outflows
Closing Balance
Opening balance + net cash flow
Gross profit margin
(Gross Profit/ revenues) x100
Operating profit margin
(Operating Profit/ revenues) x100
Percentage change
(Change/ original) x100
Contribution per unit
Selling price per unit - variable cost per Unit
Break-even output
Fixed cost/ contribution per unit
Price elasticity of demand
% change in quantity demanded/ % change in price
Income elasticity of demand
% change in quantity demanded/ % change in income
Absent Rate
(Number of days for unauthorised absence/ total days worked by the workforce) x100
Labour productivity
Output per period/ number of employees at work
Unit costs
Total production costs in a period/ total output in a period
Profit
Total revenue - Total costs
Total revenue
Price x Quantity sold
Market growth
(Change in market size/ origional market size) x100
Market share
(Sales of x/ total sales in a whole market) x100
Labour turnover
(Number off staff leaving/ number of staff employed by a business) x100
Gross profit
Revenue-cost of sales
Operating profit
Gross profit-operating expenses
Profit for the year
(Operating profit + profit from other activities) - (net finance costs-tax)
Employees retention rate
(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
Labour costs per unit
Labour cost/ unit of output
