Theme 2 Calculations Flashcards
Net cash flow
Total inflows-total outflows
Sales volume
Total number of sales over a period of time
Sales volume
Number of units x unit price
Total variable costs
Number of units sold x variable cost per unit
Total costs
Fixed costs + variable costs
Contribution per unit
Selling price - 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
Gross profit margin
Gross profit/sales revenue x100
Operation profit
Gross profit - overheads
Operating profit margin
Operating profit/sales revenue x 100
Net profit
Operating profit +/- finance costs
Net profit margin
Net profit/sales revenue x100
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/max level of output x 100
Added value
Sales revenue - costs of bought in goods and services
Unit costs
Total cost of production/number of units of output produced
Return on investment (%)
Return in investment (£)/cost of the investment (£)
Profit for the year
Operating profit + profit from other activities - net finance costs - tax
Margin of safety
Actual level of output - break even level of output
Profit for the year margin (%)
Profit for the year/sales revenue x 100
Labour turnover(%)
Number of staff leaving during the year/average number of staff employed during the year
