Formulas To Learn Flashcards
Labour turnover
Number of staff leaving/Total number of staff. X 100
Sales revenue
Price x quantity sold
Average revenue
Total revenue/ Quantity
Total costs
Fixed costs + variable costs
Average costs
Total costs / Quantity
Contribution
Price - variable cost
Break even level of output
Fixed costs / contribution
Margin of safety
Level of demand - break even quantity
Target profit output
Fixed costs + target profit / No. of units
Target profit price
Total costs + target profit / No. of units
Gross profit
Sales revenue - COGS
COGS
Opening stock + purchase - closing stock
Net profit
Gross profit - expenses
Retained profit
Net profit after interest and tax - dividends
Net current assets (working capital)
Current assets - current liabilities
Net assets
Total assets - total liabilities
Oweners’ equity
Share capital + retained profit
Net assets (2)
= owners’ equity
Annual depreciation
Original cost - residual value / expected lifespan
Reducing balance method
Historical cost - accumulated depreciation
Working capital
Current t assets - current liabilities
Net cash flow
Total cash inflows - total cash outflows
Closing balance
Net cash flow + opening balance
Pay back period
Investment cost / contribution per month
Can only use this formula if all the expected cash flows are the same
Variance
Actual outcome - budgeted outcome
Market share
Firms sales revenue/industry’s sales revenue x100
Cost to buy
Price x quantity
Cost to make
Fixed costs + (average variable costs x quantity)
