3.2 Types of costs
Fixed costs + variable costs
What is the formula used to calculate total costs?
Selling price - average variable costs
What is the formula used to calculate contribution per unit?
Stock + Debtors + Bank balance + Cash
What is the formula used to calculate current assets?
Total cash inflows - total cash outflows
What is the formula used to calculate net cash flow?
DAILY DOUBLE!
Total output / number of workers
What is the formula used to calculate labour productivity?
Price x quantity sold
What is the formula used to calculate sales revenue?
DAILY DOUBLE!
Total fixed costs / contribution per unit
What is the formula used to calculate break-even quantity?
DAILY DOUBLE!
Sales revenue - Cost of goods sold
What is the formula used to calculate gross profit?
DAILY DOUBLE!
Share capital + accumulated retained profits
What is the formula used to calculate equity?
[Company sales / total industry sales] x 100
What is the formula used to calculate market share?
Total costs / total output or TC / Q
What is the formula used to calculate average costs?
Total revenue - Total costs
or Margin of safety (MOS) x Contribution per unit
What is the formula used to calculate profit?
Bank overdraft + Creditors + Short-term loans
What is the formula used to calculate current liabilities?
DAILY DOUBLE!
Opening cash balance + net cash flow
What is the formula used to calculate closing cash balance?
DAILY DOUBLE!
Gross profit - expenses
What is the formula used to calculate net profit (before interest & tax)?
Total fixed costs / total output
What is the formula used to calculate average fixed costs?
DAILY DOUBLE!
Current output or current level of demand - Break-even quantity
What is the formula used to calculate margin of safety (or safety margin)?
Current assets - current liabilities
What is the formula used to calculate working capital (or net current assets)?
(HL only)
[Purchase cost – Residual or scrap value]
Useful life
What is the formula used to calculate annual straight-line depreciation?
Opening stock (inventory) + Purchases of stock - Closing stock
What is the formula used to calculate cost of goods solds?
DAILY DOUBLE!
Break-even quantity x selling price
What is the formula used to calculate break-even revenue?
(Fixed cost + Target profit)
Contribution per unit
What is the formula used to calculate target profit output?
DAILY DOUBLE!
(Fixed assets + working capital) – Long-term liabilities
What is the formula used to calculate net assets?
years before B/E + net income needed to B/E
net income in following year
B/E = Break even
What is the formula used to calculate payback period?
(HL only)
Maximum stock level - reorder quantity
What is the formula used to calculate buffer stock?