Costs & revenues
Calculate sales revenue (total revenue)
Total cash inflows - total cash outflows
Calculate net cash flow
(Sales of McDonald's / Total sales in the fast food market) x 100
Calculate market share
Budgeted value - actual value (HL)
Calculate a budget variance
What are direct costs?
Total fixed costs / contribution per unit
Calculate the break-even quantity (point)
Sales revenue - cost of sales
Calculate gross profit
Stock + Debtors + Bank + Cash
Calculate current assets
Maximum stock level - re-order quantity (HL)
Calculate buffer stock
Customers who have received trade credit. Listed as a current asset in the statement of financial position (Balance Sheet).
What are debtors?
Current output - break-even quantity
Calculate the margin of safety
Calculate profit before interest & tax (operating profit)
Current assets - current liabilities
Calculate working capital (net current assets)
(Defected output / total tested output) x 100 (HL)
Calculate the defect rate
Suppliers who have sold goods to the business on trade credit. Listed as a current liability in the statement of financial position (Balance Sheet).
What are creditors?
(Total fixed costs + target profit) / contribution per unit
Calculate the target profit
Opening stock + Purchases of stock - Closing stock
Calculate cost of sales
[Number of employees who leave / Average number of employees] x 100
Calculate labour turnover
Total fixed costs / total output
Calculate average fixed costs
The total value of the owner's investment into the business. Calculated as Share capital + accumulated retained profits.
What is equity (share capital)?
Sales revenue - total variable costs
Calculate total contribution
(Remaining investment balance / Cash flow in the year payback is achieved) x 365
Calculate the Payback period in days
LFT - duration - EST (HL)
Calculate the total float
Total contribution / operating profit (HL)
Calculate operating leverage
The difference between the selling price and the unit cost. Usually expressed as a percentage figure, such as 50% above the cost per unit. For example, if a toy costs $10 per unit to make and the firm wanted to earn a 80% profit, then the selling price would be $18 ($10 × 1.8 = $18).
What is the profit margin (mark-up)?