theme 2 equations Flashcards
formula for net cash flow
total inflows - total outflows
formula for closing balance
opening balance + net cash flow
formula for sales volume/quantity
selling price
formula for sales revenue
sales quantity x selling price
formula for total costs
total fixed costs + total variable costs
formula for average variable costs
output
formula for average fixed costs
output
formula for average total costs
output
formula for contribution
sales revenue - variable costs
formula for contribution per unit
price per unit - variable costs per unit
formula for break even point
contribution per unit (price per unit - variable costs per unit0)
Formula for margin of safety
current output - break even output
formula for variance
actual level - budgeted level
gross profit
revenue - cost of sales
operating profit
gross profit - other operating costs
profit for the year
operating profit - tax/interest
gross profit margin (%)
gross profit
—————– x 100
revenue
operating profit margin (%)
operating profit
———————— x 100
revenue
profit for the year margin (%)
profit for the year
————————– x100
revenue
current ratio (expressed as a ratio)
current liability
Acid test ratio
current liability
capacity utilisation (%)
current output
———————– x 100
maximum possible output
