Business Formulae and key data

  • Created by: annie1405
  • Created on: 07-04-18 10:46
Total Costs
Fixed costs + Variable costs
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Profit
Total revenue - Total costs OR Total contribution - Fixed costs
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Variable costs (Total Variable costs)
Variable cost per unit x number of units sold
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Total revenue (sales revenue or turnover)
Selling price per unit x number of units sold
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Market Capitalisation
Number of issued shares x current shares price
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Net gain in a decision tree
Expected value - initial cost of decision
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Market Size / volume (definition)
The quantity of goods and services produced in a particular market over a period of time (usually 1 year)
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Market size / Value (definition)
The total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time (usually 1 year)
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Sales Volume (definition)
The quantity of goods and services produced by a particular business over 1 year
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Sales Value (definition)
The total sales revenue of a particular business over 1 year.
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Added value (value added)
Sales revenue - costs of brought in goods and services
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Gross Profit
Sales revenue - cost of sales
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Operating Profit
Sales revenue - cost of sales - operating expenses
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Profit for the Year
Operating profit + profit from other activities - net finance costs -Tax
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Variance (Definition)
The difference between an actual and a budgeted figure
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Favourable Variance (definition)
Profits being higher than forecasted
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Adverse Variance (Definition)
Profits being lower then forecasted
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Contribution per unit
Selling price - Variable cost per unit
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Total contribution
Contribution per unit x units produced or sold OR Total revenue - total variable costs
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Break even output
Fixed costs
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Break even output on a break even chart
The level of output at which Total revenue equals total costs
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Level of profit on a break even chart
The vertical distance between the total revenue line and the total costs line
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Margin of safety
Actual level of output - Break even level of output
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Gross profit margin (%)
Gross profit
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Operating profit margin (%)
Operating profit
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Profit for the year margin (%)
Profit for the year
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Labour turnover (%)
Number of staff leaving during the year
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Employee retention rate (%)
Number of employees at the end of the year- number of leavers
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Employee costs as a percentage of turnover
Employee costs
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Labour cost per unit
Labour costs
30 of 51
Return on Capital employed (ROCE) (%)
Operating profit
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Capital employed
Total equity + non current liabilities
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Current ratio
Current assets
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Gearing (%)
non current liabilities
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Payables days
Payables
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Receivables days
Recievables
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Inventory turnover
Cost of goods sold
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Average rate of return (%)
Net return from project (£) or number of years
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Market Growth (%) in year 'x'
Change in size of market
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Sales growth (%) in year 'x'
Change in sales of product or business
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Market share (%)
Sales of one product/brand/business
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Price elasticity of Demand
Percentage change in quantity demanded
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Labour Productivity
Output per time period
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Unit costs (average costs)
Total costs of production
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Capacity utilisation (%)
Actual output in a given time period
45 of 51
Return on investment ROI (%)
Return on investment £
46 of 51
Employee costs as a (%) of revenue
employee costs
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Net current assets
current assets - current liabilities = the current working capital the business has available
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Net assets
Total assets - total liabilities
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Pay back
Amount remaining to recover
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Average rate of return
Average annual profit
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Other cards in this set

Card 2

Front

Profit

Back

Total revenue - Total costs OR Total contribution - Fixed costs

Card 3

Front

Variable costs (Total Variable costs)

Back

Preview of the front of card 3

Card 4

Front

Total revenue (sales revenue or turnover)

Back

Preview of the front of card 4

Card 5

Front

Market Capitalisation

Back

Preview of the front of card 5
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