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

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