Theme 2 Flashcards
Net cash flow
Total inflows - Total Outflows
Sales Volume
Number of units/time
Sales Revenue
Number of units sold x sales price
Total VC
Number of units sold x variable cost per unit
Total Costs
Fixed costs + variable costs
Total Contribution
Contribution per unit x Number of units sold
Break-even
Fixed Cost/contribution per unit
Variance
Actual-Budget
Gross Profit
Sales revenue - cost of sales
Operating profit
Gross profit- overheads
Net profit
Operating profit +/- finance costs
Gross profit margin
(Gross profit/sales revenue) x 100
Operating profit margin
(Operating/sales revenue) x 100
Net profit margin
(Profit of the year/sales revenue) x 100
Current ratio
Current assets/current liabilities
Acid test ratio
(Current assets - stock) / current liabilities
Productivity (labour)
Output per period/number of employees in that period
Capacity utilisation
Actual level of output/Maximum possible output) x 100
Contribution per unit
Selling price per unit - variable cost per unit
