Numeracy and quantitative skills Flashcards

1
Q

Break-even - Output

A

Break-even output = fixed costs/contribution

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2
Q

Break-even - Margin of safety

A

The margin of safety = current output - break-even output

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3
Q

Capacity Utilisation

A

(Actual output / Maximum possible output) × 100

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4
Q

Contribution

A

Selling price − variable costs

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5
Q

Total Costs

A

Fixed costs + Variable costs

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6
Q

Variable costs

A

Variable cost per unit × Number of units sold

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7
Q

Investment appraisal - ARR

A

Average annual return / Initial cost (£) × 100

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8
Q

Investment appraisal - NPV

A

Present Value – cost of investment

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9
Q

Labour - Costs per unit

A

Labour costs / Units of output

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10
Q

Labour - Employee cost as a percentage of turnover

A

Employee costs / Turnover
× 100

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11
Q

Labour - Employee retention rate

A

Current number of employees /Number of employees at the start of the time period ×100

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12
Q

Labour Productivity

A

Output / Number of employees

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13
Q

Labour turnover

A

Number of staff leaving / Number of staff employed by the business × 100

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14
Q

Market capitilisation

A

Number of issued shares × Current share price

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15
Q

Market growth rate

A

Change in the size of the market over a period / Original size of the market × 100

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16
Q

Market share

A

Sales of one product OR brand OR business / Total sales in the market × 100

17
Q

Gross Profit

A

Revenue − Cost of Sales

18
Q

Operating Profit

A

Gross profit − Operating Expenses

19
Q

Capital employed

A

Total equity + non-current liabilities

20
Q

Gearing

A

Non-current liabilities/ Cap employed x100

21
Q

Gross Profit margin

A

Gross Profit / Revenue
× 100

22
Q

Inventory turnover

A

Cost of sales / Average inventories held

23
Q

Operating profit margin

A

Operating Profit / Revenue
× 100

24
Q

Payable days

A

Payables / Cost of sales × 365

25
Profit for the year margin
Profit for year / Revenue × 100
26
Receivable days
Receivables/Revenue × 365
27
Return on investment
Profit from the investment (£) /Cost of the investment (£) × 100
28
Unit costs
Total costs / Number of units of output
29
Variances
Budgeted figure – the actual figure
30
Profit
Total revenue − Total costs
31
Revenue (Sales or turnover)
Selling price per unit × Number of units sold
32
ROCE
Operating profit / Capital employed x100
33
Operating profit
Sales Revenue - Cost of Sales - Operating Expenses