Business AS key terms

Added Value:

Sales revenue - The costs of bought in materials, components and services.

Market Share:

Market share = sales of one product or brand or company ÷ total sales in the market x 100

Contribution Per Unit:

Selling price per unit - variable cost per unit

Breakeven Output:

Fixed costs ÷ contribution per unit

Labour Productivity:

Output per period ÷ number of employees per period

Labour Turnover:

Number leaving a business over a given period ÷ average number employed over a given period x 100

Absenteeism:

Number of staff absent on one day ÷ total numer of staff x 100

Capacity Utilisation:

Actual output per annum ÷ maximum possible output per annum x 100

Price Elacticity Of Demand:

% change in quantity demanded ÷ % change in price