THEME 2 FORMULAS PART II Flashcards
1
Q
Variance
A
Actual - output
2
Q
Gross profit
A
sales revenue - cost of sales
3
Q
Operating profit
A
Gross profit - overheads
4
Q
Net profit
A
Operating profit +/- Finance costs
5
Q
Gross profit margins
A
(gross profit/sales revenue) x 100
6
Q
Operating profit margin
A
(operating profit/sales revenue) x 100
7
Q
Net profit margin
A
(net profit/sales revenue) x100
8
Q
Current ratio
A
current assets/current liabilities
9
Q
acid test ratio
A
(current assets - stock) / current liabilities
10
Q
Productivity (labour)
A
Output per period (units) / Number of employees
11
Q
Capacity utilisation
A
(actual level of output/Max possible output) x 100
