Business key formula

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total revenue
selling price per unit x quantity sold
1 of 18
total costs
fixed costs + variable costs + semi-variable costs
2 of 18
profit
total revenue - total costs
3 of 18
contribution
unit selling price - unit variable costs
4 of 18
total contribution
contribution per unit x quantity sold
5 of 18
break-even output
total costs = total revenue OR total fixed costs / contribution
6 of 18
total profit output
(total fixed costs per unit + target profit) / contribution
7 of 18
net cash flow
cash inflow - cash outflows
8 of 18
closing cash balance
opening cash balance + net cash flow
9 of 18
profit budget
budgeted income - budgeted expenditure
10 of 18
variance
budget figure - actual figure
11 of 18
capacity utilisation (%)
(actual profit per annum (month) / maximum possible output per annum) x 100
12 of 18
net profit margin (%)
(net profit (before tax) / sales) x 100
13 of 18
return on capital (%)
(net profit (before tax) / capital investment) x 100
14 of 18
punctuality (%)
(deliveries on time / total deliveries) x 100
15 of 18
absenteeism (%)
(number of days taken off work or unauthorised absence / total days worked by workforce over period) x 100
16 of 18
labour turnover (%)
(number of employees leaving during a period / average number employed through period) x 100
17 of 18
labour productivity (%)
(output of units during period / number of employees at work) x 100
18 of 18

Other cards in this set

Card 2

Front

fixed costs + variable costs + semi-variable costs

Back

total costs

Card 3

Front

total revenue - total costs

Back

Preview of the back of card 3

Card 4

Front

unit selling price - unit variable costs

Back

Preview of the back of card 4

Card 5

Front

contribution per unit x quantity sold

Back

Preview of the back of card 5
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