Formulae and Key Data

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Total Costs
Fixed Costs + Variable Costs
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Profit
Total revenue - Total Costs
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Variable costs
Variable cost per unit x number of units sold
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Total revenue
Selling price x Number of units sold
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Market Capitalisation of a business
Number of shares issued x current share price
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Net Gain (Decision tree)
Expected value - initial cost of decision
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Market Size (Volume)
The quantity of goods and services produced in a particular market over a period of time
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Market size (Value)
The total sales revenue generated from selling all of the goods and services produced in a aprticulr market over a period of time
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Sales Volume
Quantity of goods and services produced by a particular business over a period of time
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Sales value
The total sales revenue of a particular business over a period of time
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Market growth in year e.g. 2014
Change in size of market between year 2014 and 2015/ Sales of the market in year 2014 x100
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Market share
Sales of one product OR brand OR business / total slaes in the market x 100
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Price Elasticity of demand
Percentage change in quantity demand / percentage change price
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Added value
Sales revenue - costs of bought in goods and services
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Labour Productivity
Output per period / Number of employees
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Unit costs (average costs)
Total costs of production / Number of units of output produced
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Capacity Utilisation
Actual output in a given rime period / Maximum possible output in a given time period x100
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Return on Investment
Return on investment(£) / cost of the investment(£) x100
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Gross Profit
Sales revenue - Cost of sales
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Profit for the year
Operating rofit + profit from other activities - net finance costs - tax
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Varaince
The difference between an actual figure and bugeted figure.
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Contribution per unit
Selling price - Variable costs 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 / Contribution per unit
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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 / sales revenue x100
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Operating profit margin
Operating profit / sales revenue x100
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Profit for the year Margin
Profit for year / sales revenue x100
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Labour Turnover
Number of staff leaving during the year / Average number of staff employed during the year x100
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Labour cost per unit
Labour costs / Units of output
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Employee retnetion rate
Number of employees at the end of period number of leavers / Number of employyes at end of period x100
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Employee costs as a percentage of turnover
Employee costs / Sales turnover x 100
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Return on Capital Employed (ROCE)
Operating profit / Total Equity + non-current liabilities x100
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Current Ratio
Current Assets / Current liabilities
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Gearing (%)
Non-current liabilities / Total Equity + Non-current liabilities
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Payables Days
Payables / Cost of slaes x365
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Receivables Days
Receivables / Sales Revenue x365
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Inventory Turnover
Cost of goods sold / Average inventories held
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Average rate of return (%)
Net return from project (£) or number of years / Initial cost of project (£) x100
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Other cards in this set

Card 2

Front

Total revenue - Total Costs

Back

Profit

Card 3

Front

Variable cost per unit x number of units sold

Back

Preview of the back of card 3

Card 4

Front

Selling price x Number of units sold

Back

Preview of the back of card 4

Card 5

Front

Number of shares issued x current share price

Back

Preview of the back of card 5
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