AQA A-level Business Studies Equations

  • Created by: Gaynor
  • Created on: 01-05-19 10:04
Revenue
Selling price per unit × Number of units sold
1 of 36
Variable Costs
Variable cost per unit × Number of units sold
2 of 36
Total Costs
Fixed Costs + Variable Costs
3 of 36
Profit
Total revenue −Total costs (OR) Total contribution −Fixed costs
4 of 36
Market capitalisation of a business
Number of issued shares × Current share price
5 of 36
Expected value of a decision with two possible outcome
(Pay-off of A × probability of A)+ (Pay-off of B × probability of B)
6 of 36
Net gain
Expected value - Initial cost of decision
7 of 36
Market growth (%)
Change in the size of the market over a period / Original size of the market × 100
8 of 36
Market share (%)
Sales of one product OR brand OR business / Total sales in the market × 100
9 of 36
Added value
Sales revenue − costs of bought in goods and services
10 of 36
Labour productivity
Output over a time period / Number of employees
11 of 36
Unit Costs
Total costs / Number of units of output
12 of 36
Capacity utilisation (%)
Actual output / Maximum possible output × 100
13 of 36
Return on Investment (%)
Profit from the investment (£) / Cost of the investment (£) × 100
14 of 36
Gross profit
Revenue − Cost of Sales
15 of 36
Operating profit
Gross profit − Operating Expenses
16 of 36
Profit for Year
Operating profit + Profit from other activities − Net finance costs −Tax
17 of 36
Gross profit margin (%)
Gross profit / Revenue × 100
18 of 36
Operating profit margin (%)
Operating profit / Revenue × 100
19 of 36
Profit for Year margin (%)
Profit for year / Revenue × 100
20 of 36
Variance
Budgeted figure – actual figure
21 of 36
Contribution per unit
Selling price − Variable costs per unit
22 of 36
Total contribution
Contribution per unit x Unit sold (OR) Total revenue − Total variable costs
23 of 36
Break-even output
Fixed costs / Contribution per unit
24 of 36
Margin of saftey
Actual level of output − Break-even level of output
25 of 36
Labour Turnover (%)
Number of staff leaving / Number of staff employed by the business × 100
26 of 36
Employee retention rate (%) for a particular time period
Number of employees who remained with the business for the whole period of time / Number of employees at start of the time period ×100
27 of 36
Employee costs as percentage of turnover
Employee costs / Turnover × 100
28 of 36
Labour costs per unit
Labour costs / Units of output
29 of 36
Return on capital employed (ROCE)(%)
Operating profit / Total equity + non-current liabilities × 100 Where total equity + non-current liabilities = capital employed
30 of 36
Current ratio
Current assets / Current liabilities
31 of 36
Gearing (%)
Non-current liabilities Total equity + non-current liabilities ×100 Where total equity + non-current liabilities = capital employed
32 of 36
Payable days
Payables / Cost of sales × 365
33 of 36
Receivable days
Receivables / Revenue × 365
34 of 36
Inventory turnover
Cost of sales / Average inventories held
35 of 36
Average rate of return (%)
Average annual return (£) / Initial cost of project (£) × 100
36 of 36

Other cards in this set

Card 2

Front

Variable Costs

Back

Variable cost per unit × Number of units sold

Card 3

Front

Total Costs

Back

Preview of the front of card 3

Card 4

Front

Profit

Back

Preview of the front of card 4

Card 5

Front

Market capitalisation of a business

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Equations resources »