Business AS equations

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  • Created by: Hedgester
  • Created on: 04-05-22 19:18
capital productivity
output per time period / number of machines
1 of 35
market share
(sales of business / total sales in the market) x 100
2 of 35
PED - price elasticity of demand
% change of quantity demanded / % change in price
3 of 35
YED - income elasticity of demand
% change in quantity demanded / % change in income
4 of 35
Absenteeism (sick time)
(number of days lost through absence / total possible worked days) x 100
5 of 35
variance
(difference between budget and actual/ budget) x 100
6 of 35
variable costs
quantity sold x cost of sales
7 of 35
total costs
fixed cost + variable costs
8 of 35
revenue
quantity sold x selling price
9 of 35
margin of saftey
selected level of business activity – break even point
10 of 35
costs of sales
(opening stock + purchases) – closing sales
11 of 35
gross profit
sales revenue – cost of sales
12 of 35
net profit
Total assets – current liabilities
OR
gross profit – expenses
13 of 35
gross profit margin
(gross profit/sales revenue) x 100
14 of 35
operating margin
(operating profit/sales revenue) x 100
15 of 35
break even QUANTITY
fixed costs/contribution
16 of 35
break even PRICE
total costs/ quantity sold
17 of 35
net assets
(fixed assets + current assets) – (current liabilities + loan capital)
18 of 35
retained profit
net assets – shareholder funds
19 of 35
share equity
total assets – total liabilities
20 of 35
gearing
(capital employed – share equity)/ capital employed x 100
21 of 35
capital employed
current liabilities OR non-current liabilities + shareholder funds
22 of 35
working capital
current assets – current liabilities
23 of 35
current ratio
current assets/current liabilities
24 of 35
acid ratio
(current assets – stock) / current liabilities
25 of 35
turnover
cost of sales + gross profit
26 of 35
return on capital employed (ROCE)
(net profit/capital employed) x 100
27 of 35
labour productivity
number of units produced/number of workers
28 of 35
labour turnover
(number of staff leaving/average number of staff) x 100
29 of 35
retention rates
(number of employees over 1 year/number of staff) x 100
30 of 35
employee costs per unit
total labour cost/total output
31 of 35
labour costs per unit
total labour cost/total output
32 of 35
capital utilisation
(actual output/maximum output) x 100
33 of 35
unit costs
total cost/output
34 of 35
contribution
selling price - variable costs
35 of 35

Other cards in this set

Card 2

Front

(sales of business / total sales in the market) x 100

Back

market share

Card 3

Front

% change of quantity demanded / % change in price

Back

Preview of the back of card 3

Card 4

Front

% change in quantity demanded / % change in income

Back

Preview of the back of card 4

Card 5

Front

(number of days lost through absence / total possible worked days) x 100

Back

Preview of the back of card 5
View more cards

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