Test Revision Flashcards
1
Q
PED
A
%change in quantity demanded /%change in price
2
Q
YED
A
%change in demand / %change in income
3
Q
Special orders
A
Contribution = selling price-variable costs
Total con. = contribution x units sold
4
Q
ROCE
A
Net profit before tax / shareholders funds + non current liabilities x100
5
Q
Acid test
A
Current assets - stocks /current liabilities
6
Q
Current ratio
A
Current assets / current liabilities
7
Q
Gearing
A
Long term liabilities/capital employed x100
8
Q
Payback
A
Amount needed final year / amount getting final year x12
9
Q
AAR
A
Calculate profit (return-initial cost)
Divide by years and then by initial cost and times by 100
10
Q
NPV
A
Income x discounting factor each year.
Add up all years - investment
