BTEC Business Unit 3 formulas

?
Contribution
selling price - variable cost per item
1 of 12
Total contribution
contribution X number of sales
2 of 12
Margin of safety
actual sales - break-even number of sales
3 of 12
Net cashflow
total inflows - total outflows
4 of 12
Opening balance
previous month's closing balance
5 of 12
Closing balance
opening balance + net cashflow
6 of 12
Reducing balance depreciation method
fixed % deducted from value at the end of each year
7 of 12
Cost of sales
opening inventory + purchases - closing inventory
8 of 12
Gross profit
revenue - cost of sales
9 of 12
Net profit
gross profit - expenses
10 of 12
Prepayments
deduct from expenses OR add to net profit
11 of 12
Accruals
add to expenses OR deduct from net profit
12 of 12

Other cards in this set

Card 2

Front

Total contribution

Back

contribution X number of sales

Card 3

Front

Margin of safety

Back

Preview of the front of card 3

Card 4

Front

Net cashflow

Back

Preview of the front of card 4

Card 5

Front

Opening balance

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all Finance resources »