Theme 2 Formulas Flashcards
1
Q
Net cash flow
A
total inflows – total outflows
2
Q
Total variable costs
A
number of units sold x unit price
3
Q
Total costs
A
Fixed costs + Variable costs
4
Q
Contribution per unit
A
selling price - variable costs
5
Q
Total contribution
A
contribution per unit x number of units sold
6
Q
Break even
A
fixed costs/ contribution per unit
7
Q
Variance
A
actual-budget
8
Q
Gross profit
A
sales revenue-cost of sales
9
Q
Operating profit
A
gross profit-overheads
10
Q
Net profit
A
operating profit- finance tax and costs
11
Q
GPM
A
gross profit / sales revenue x 100
12
Q
OPM
A
operating profit / sales revenues x 100
13
Q
NPM
A
profit for the year / sales revenue x 100
14
Q
Current ratio
A
current assets/ current liabilities
15
Q
Acid Test ratio
A
current assets – stock / current liabilities
