- Created by: Wasik
- Created on: 09-05-12 17:27
- 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.
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- 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.
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