Theme 2 - calculations Flashcards
Total revenue
Sppu x quantity
Total variable costs
VCPU X quantity
Total costs
TVC + TFC
Net cash flow
Inflows - outflows
Opening balance
Closing balance from previous month
Closing balance
Opening balance + net cash flow
Contribution per unit
Sppu - vcpu
Break even output
Total fixed costs/ CPU
Total contribution
CPU x quantity
Margin of safety
Sales - Break even point
Profit
Total revenue - total costs
Total cpu - total fixed costs
Margin of safety x cpu
Variance
Actual figures - budgeted figures
Profit margin
Profit/revenue x100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses
Net profit/Profit for the year
Operating profit - net interest/tax
Current ratio
Current assets/current liabilities
Ideal = 2:1
Acid test ratio
(Current assets - inventory)/current liabilities
Ideal 1:1
Productivity
Output per period (units)/ Number of employees in that period
Capacity utilisation
(Actual output/max possible output)x 100
Stock control diagram
Remember:
- Label axis (stock on y axis and time on x axis).
- Right angles should always be on left hand side of triangle.
- Label buffer stock
- Label re order level
- Label max stock
- Label lead time (time between reorder and delivery).
