BUSS2 Key Terms Key terms for BUSS2 unit of the AS business studies course. 1.0 / 5 based on 3 ratings ? Business StudiesASAll boards Created by: WasikCreated on: 09-05-12 17:27 Formulas Key Formulas: Calculating Variances- Variance=budget figure- actual figure. Net Profit Margin(%)= Net Profit Before Tax/Sales (Turnover) x 100 Return On Capital(%)=Net Profit Before Tax/Capital Invested x 100 Labour Productivity= Output Per Period/No Of Employees Per Period, this is the only one that is NOT a percentage. Labour Turnover(%)= No Leaving A Business Over A Given Period/Average No Employeed Over A Given Period x 100. Absenteeism(%)=No Of Staff Absent On One Day/Total No Of Staff x 100 Annual Rate Of Absenteeism(%)=Total No Of Days Lost Due To Absence During The Year/Total No Of Days That Could Be Worked x No Of Employees x 100 H&S Absenteeism(%)= No Of Working Days Lost Due To H&S/Total No Of Possible Working Days Per Year x 100. 1 of 2 Key Terms Definitions: Budget- Agreed plan establishing the policy to be used and the anticipated outcomes of that policy. Variance Analysis- Actual and budgeted figures are compared and the reasons for differences (variances) are found. Bank Overdraft- Agreement which allows holder to withdraw more money than there is within the account, amount is specified. Short Term Loan- Sum of money provided for a specific agreed purpose. Factoring- Factoring company (usually a bank) buys the right to collect the their money from credit sales. Sale Of Assets- When a business transfers ownership of an item to a business or individual in return for cash. Sale & Leaseback- Assets owned are sold to raise cash and then rented back for use. Working Capital- The day-to-day finance used in a business consisting of assets. 2 of 2
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