Bus 2 Finance Formula

Finance Formula from AQA Business Studies- Bus 2 Exam

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Opening Balance

closing balance from previous period

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Closing Balance

opening balance+net cash flow

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Net Cash Outflow

total inflows-total outflows

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Budget Variance

budget figure-actual figure

can be applied to income/expenditure/profit

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Labour Productivity

output per period


no of employees per period

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Annual Rate of Absenteeism

no of working days lost

-------------------------------------------- x100

average number of staff

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Daily Absenteeism

no of staff absent on a day

------------------------------------------ x100

total no of staff

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Labour Turnover

no of staff leaving over period

------------------------------------------------ x100

no of staff employed over period

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Absenteeism due to Health and Safety

no of days lost due to H+S

------------------------------------------- x100

total no of staff

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Unit Costs

total cost


no of units of output

10 of 18

Capactiy Utilisation

actual output

-------------------------------- x100

max poss output

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Scrapage Percentage

no of units wasted

-------------------------------------- x100

total no of units

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Punctuality Percentage

deliveries on time

--------------------------------------- x100

total deliveries

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Return on Capital

net profit

--------------------------- x100

capital invested

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Net Profit Margin

net profit


sales revenue

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total revenue-total costs

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Price Elasticity of Demand

% change in quantity demanded

-------------------------------------------------- x100

% change in price

if it equals

       less than one= price elastic

       more than one= price inelastic

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Favourable/Adverse Budgets


 - actual revenue is greater than budgeted

- actual costs are lower than budgeted


- actual revenue is less than budgeted

- actual costs are higher than budgeted

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Peter Webster


good flashcards, but wouldnt recommend the download as it is simply impossible to understand

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