Theme 2 Flashcards
Net cash flow
Total inflows-Total outflows
Sales volume
Total number of units sold over a period of time
Sales revenue
Number of units sold X unit price
Total variable costs
Number of units sold X variable cost per unit
Total costs
Fixed costs + variable cost
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Contribution per unit X number of units sold
Break even
Fixed costs/contribution per unit
Variance
Actual - Budget
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - overheads
Net profit
Operating profit - fixed costs
Gross profit margin
(Gross profit/sales revenue)X100
Operating profit margin
(operating profit/sales revenue)X100
Net profit margin
(Profit for the year or net profit/sales revenue)X100
Current ratio
Current assets/current liabilities
Acid test ratio
(current assets-stock)/current liabilities
Productivity
Output per period/number of employees in that period
Capacity utilisation
(Actual level of output/Maximum possible output)X100
Net cash flow
Cash inflows - cash outflows
Profit for the year
Operating profit- finance costs - taxation
Average cost per unit
Total production costs in a period/Total output in period
