Theme 2 - Formulae Flashcards
Net cash flow
Total inflows - Total outflows
Sales volume
Total number of units sold over a period of time
Sales Revenue
Number of units sold 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 per unit - variable cost per unit
Break even
Fixed costs/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 profit/Sales revenue) x 100
Profit for the year (net profit) margin
(Profit for the year / Sales revenue) x 100
Current ratio
Current assets / current liabilities
