Theme 2- Formula Flashcards
1
Q
NET CASH FLOW
A
Total inflows - Total outflows
2
Q
Sales Volume
A
Total of units sold over a period of time
3
Q
Sales revenue
A
Number of units sold x unit price
4
Q
Total variable costs
A
Number of units sold x variable cost per unit
5
Q
Total costs
A
Fixed costs + variable costs
6
Q
Contribution per unit
A
Selling price per unit - variable cost per unit
7
Q
Total contribution
A
Contribution per unit x number of units sold
8
Q
Break even
A
Fixed costs/ contribution per unit
9
Q
Variance
A
Actual -budget
10
Q
Gross profit
A
Sales revenue - cost of sales
11
Q
Operating profit
A
Gross profit - overheads
12
Q
Net profit
A
Operating profit +/- finance cost
13
Q
Gross profit margin
A
(Gross profit/ sales revenue) x100
14
Q
Profit for the year (net profit) margin
A
(Profit for the year/ sales revenue) x100
15
Q
Current ratio
A
Current assets/ current liabilities
