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Flashcards in Business Deck (26)
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1




What is the formula for variable costs ?


Variable costs= Variable cost per unit x N.O. Units sold

2

What is the formula for Market capitalisation?

Market capitalisation of a business = N.O. Issues shared x current share price

3

Added value formula is what

Added value= sales revenue - cost of bought in goods and services

4

What is the formula for labour productivity ?

Labour productivity = output per time period/ N.O. Employees

5

Unit costs formula ?

Total costs of production/ N.O. Units of output produced

6

Capacity utilisation formula is?

Actual output in a given time period/ maximum possible output in a given time period x 100

7

What is the formula for ROI

ROI/COI x 100

8

What is the formula for gross profit ?

Gross profit = sales rev- Variable costs per unit

9

What is the formula for profit from operations

Profit from operations = sales revenue - Cost of sales -operating expenses

10

What is the formula for profit for year?

Profit for year = operating profit + profits from other activities - Net finance costs - Tax

11

What is the Formula for variance ?

Variance = the difference between an actual and a budged figure. Favourable variance results in profit being higher than forecast. Adverse variance results in profits being lower than forecast.

12

What is contribution per unit?

Contribution per unit = selling price - variable costs per unit

13

What is the formula for total contribution?

Total contribution = contribution per unit x units produced or sold OR TOTAL CONTRIBUTION = TR - Total variable costs

14

What is the formula for the break-even output?

Break- even output= fixed costs/ contribution per unit

15

What is the margin of safety formula?

Margin of safety = actual level of output - break even level of output

16

What is the formula for gross profit margin?



Gross profit = gross profit/ sales revenue x100

17

What is the formula for profit from operations margin ?

Operating profit margin = operating profit/ sales revenue x 100

18

What is the formula for profit for year margin ?

profit for year margin = profit for year/ sales revenue x 100

19

What is the formula for labour turnover ?

Labour turnover = N.O. Staff leaving / Average N.O. Staff x 100

20

What is the for labour retention?

Labour retention = N.O. Staff Employed at end of period - N.O leavers/ N.O. Of staff employed at end of period x 100

21

Formula for employee costs as percentage of turnover?

Employee costs as percentage of turnover = Employee costs/ sales turnover x 100

22

What is the formula for labour costs per unit?

Labour cost per unit = Labour costs/ Units of output

23

What is the formula for ROCE

ROCE = operating profit/ Total equity + non-current liabilities

24

What is the formula for Gearing ?

Gearing= non-current liabilities/ total equity + non current liabilities

25

What is the formula for Inventory turnover?

Inventory turnover = cost of goods sold/ Average inventories held

26

What is the formula for Average rate of return

Average rate of return= Net return from project or N.O. Years/ initial cost of project X 100