Business Equations and Definitions from the AQA formula sheet with a few extra ive found that I needed 0.0 / 5 ? Business Studiesequations and definitionsA2/A-levelAQA Created by: hollylongCreated on: 17-05-18 14:36 Total costs Fixed costs + Variable costs 1 of 36 Profit Total revenue - Total costs OR Total contribution - Fixed costs 2 of 36 Variable costs (total VC) Variable cost per unit × Number of units sold 3 of 36 Total revenue (Sales revenue or Turnover) Selling price per unit × Number of units sold 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 outcomes (Pay-off of A × probability of A) + (Pay-off of B × probability of B) 6 of 36 In a decision tree Net gain Expected value - Initial cost of decision 7 of 36 Market growth % in year'X (Change in the size of the market between year X-1 and year X / Size of the market in year (X-1)) x100 8 of 36 Sales growth % in year'X (Change in sales of product or business between year X-1 and year X / Sales of product or business in year (X-1)) x100 9 of 36 Market share (%) (Sales of one product OR brand OR business / Total sales in the market) x100 10 of 36 Price elasticity of demand Change in quantity demanded / change in price 11 of 36 Income elasticity of demand Change in quantity demanded / change in income 12 of 36 Added value Sales revenue-costs of bought-in goods and services 13 of 36 Labour productivity Output per time period / Number of employees 14 of 36 Unit costs Total costs of production / Number of units of output produced 15 of 36 Capacity utilisation % Actual output in a given time period / Maximum possible output in a given time period x100 16 of 36 Return on investment % (Return on investment (£) / Cost of the investment (£)) x100 17 of 36 Gross Profit Sales Revenue - Cost of Sales 18 of 36 Operating profit Sales Revenue - Cost of Sales - Operating Expenses 19 of 36 Profit for year Operating profit + Profit from other activities - Net finance costs - Tax 20 of 36 Contribution per unit Selling price - Variable costs per unit 21 of 36 Total contribution Contribution per unit × Units produced or sold OR Total revenue - Total variable costs 22 of 36 Break-even output Fixed costs / Contribution per unit 23 of 36 Margin of safety Actual level of output - Breakeven level of output 24 of 36 Gross profit margin % (Gross Profit / Sales Revenue) x100 25 of 36 Operating profit margin % (Operating Profit / Sales Revenue) x100 26 of 36 Profit for year margin % (Profit for the Year / Sales Revenue) x100 27 of 36 Labour turnover % (Number of staff leaving during the year /Average number of staff employed by the business during the year) x100 28 of 36 Employee retention rate % for a particular time period (Number of employees at end of period-number of leavers / Number of employees at end of period) x100 29 of 36 Employee costs as percentage of turnover (Employee costs / Sales turnover) x100 30 of 36 Labour cost per unit Labour costs / Units of output 31 of 36 capital employed total equity + non-current liabilities 32 of 36 Return on capital employed (ROCE %) (operating profit / capital employed) x100 33 of 36 Current ratio Current assets / Current liabilities 34 of 36 Gearing % (Non-current liabilities / capital employed) x100 35 of 36 Payables days (Payables / cost of sales) x365 36 of 36
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