formulas Flashcards
what is the formula for AVERAGE COST?
average cost= total cost
/
output
what is the formula for SALES REVENUE?
sales revenue= quantity x selling price
what is the formula for PERCENTAGE CHANGE?
percentage change= new figure - old figure
/
old figure x 100
what is the formula for NET CASH FLOW?
net cash flow= total inflows - total outflows
what is the formula for MARKET SHARE?
market share= sales of a business
/
total sales in the market x 100
what is the formula for PRICE ELASTICITY OF DEMAND?
percentage change in quantity demanded
/
percentage change in price
what is the formula for ACID TEST RATIO?
current assets - inventories
/
current liabilities
what is the formula for WORKING CAPITAL?
current assets - current liabilities
what is the formula for CLOSING BALANCE?
net cash flow + opening balance
what is the formula for TOTAL VARIABLE COSTS?
quantity x variable cost per unit
what is the formula for TOTAL COSTS?
total fixed costs + total variable costs
what is the formula for CAPACITY UTILISATION?
current output
/
maximum possible output x 100
what is the formula for GROSS PROFIT?
revenue - cost of sales
what is the formula for CONTRIBUTION?
selling price - variable cost per unit
what is the formula for INCOME ELASTICITY OF DEMAND?
percentage change in quantity demanded
/
percentage change in income
ution what s the formula for CURRENT RATIO?
current assets
/
current liabilities
what is the formula for BREAK EVEN?
fixed costs
/
contribution
what is the formula for OPERATING PROFIT MARGIN?
operating profit
/
revenue x 100
what is the formula for OPERATING PROFIT?
gross profit - operating expenses
what is the formula for GROSS PROFIT MARGIN?
gross profit
/
revenue x 100
what is the formula for ACID TEST RATIO?
current assets - stock
/
current liabilities :1
what is the formula for AVERAGE RATE OF RETURN (ARR)?
net return(profit) per annum / capital outlay (cost) x 100
what is the formula for the PAYBACK METHOD OF INVESTMENT APPRAISAL?
amount required
/
net cash flow in year x 12
what is the formula for TOTAL FLOAT?
LFT activity - EST activity - duration
what is the formula for FREE FLOAT?
EST start of next task - EST start of this task - duration
what is the formula for ASSETS?
capital + liabilities
what is the formula for WORKING CAPITAL?
current assets - current liabilities
what is the formula for GEARING RATIO?
non current liabilities
/
capital employed x 100
what is the formula for CAPITAL EMPLOYED?
total assets - current liabilities
what is the formula for RETURN ON CAPITAL EMPLOYED (ROCE)?
operating profit
/
capital employed x 100
what is the formula for LABOUR PRODUCTIVITY?
total output (over a period time)
/
average number of employees (over a period of time)
what is the formula for LABOUR TURNOVER?
number of staff leaving (over a period of time)
/
average number of staff overall x 100
what is the formula for LABOUR RETENTION?
number of staff staying (over period of time)
/
average number of staff overall x 100
what is the formula for RATE OF ABSENTEEISM?
number of staff absent on a day
/
total number of staff employed x 100
