Business Equations A2 0.0 / 5 ? Business StudiesEquationsA2/A-levelEdexcel Created by: meglanganCreated on: 24-02-20 13:07 MARKET SHARE (sales of a product or business / total market sales) x 100 1 of 37 PRICE ELASTICITY OF DEMAND (PED) % change in quantity demanded / % change in price 2 of 37 INCOME ELASTICITY OF DEMAND (YED) % change in quantity demanded / % change in income 3 of 37 NET CASH FLOW total inflows - total outflows 4 of 37 SALES VOLUME total number of units sold over a period of time 5 of 37 SALES REVENUE units sold x unit price 6 of 37 TOTAL VARIABLE COSTS units sold x variable unit cost 7 of 37 TOTAL COSTS fixed costs + variable costs 8 of 37 CONTRIBUTION PER UNIT unit selling price - unit variable cost 9 of 37 TOTAL CONTRIBUTION contribution per unit x units sold 10 of 37 BREAKEVEN fixed costs / contribution per unit 11 of 37 VARIANCE actual - budget 12 of 37 GROSS PROFIT sales revenue - cost of sales 13 of 37 OPERATING PROFIT gross profit - overheads 14 of 37 NET PROFIT operating profit +/- finance costs 15 of 37 GROSS PROFIT MARGIN (gross profit / sales revenue) x 100 16 of 37 OPERATING PROFIT MARGIN (operating profit / sales revenue) x 100 17 of 37 PROFIT FOR THE YEAR MARGIN (NET PROFIT MARGIN) (profit for the year / sales revenue) x 100 18 of 37 CURRENT RATIO current assets / current liabilities 19 of 37 ACID TEST RATIO (current assets - stock) / current liability 20 of 37 LABOUR PRODUCTIVITY output per time period / number of employees 21 of 37 CAPACITY UTILISATION (actual level of output / maximum possible output) x 100 22 of 37 AVERAGE COST total cost / current output level 23 of 37 AVERAGE RATE OF RETURN (ARR) (average annual return / initial cost) x 100 24 of 37 DECISION TREES multiply each branch, add them together, minus it from investment 25 of 37 CRITICAL PATH add the EST starting from the left, always choosing the highest value 26 of 37 LFT (CRITICAL PATH) minus the values along the critical path from right to left and fill others left afterwards 27 of 37 FLOAT TIME (CRITICAL PATH) the difference between each each activity, for total float - add all of the differences together 28 of 37 CAPITAL EMPLOYED non-current liabilities + total equity 29 of 37 GEARING (non-current liabilities / capital employed) x 100 30 of 37 RETURN ON CAPITAL EMPLOYED (ROCE) (operating profit / capital employed) x 100 31 of 37 LABOUR PRODUCTIVITY output per period / number of employees per period 32 of 37 LABOUR TURNOVER (number of staff leaving the firm per year / average number of staff) x 100 33 of 37 STAFF RETENTION (staff not leaving per year / average number of staff) x 100 34 of 37 ABSENTEEISM (total absence (hours or days) in period / total possible time) x 100 35 of 37 EXCHANGE RATES IMPORTING UK price = foreign price / exchange rate 36 of 37 EXCHANGE RATES EXPORTING foreign price = UK price x exchange rate 37 of 37
Comments
No comments have yet been made