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Business
Equations 31,32,33
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Cards (8)
What is the focus of the A level Business-Themes 1 to 4 Formula Sheet?
It introduces
formulas
related to business growth and
seasonal factors
.
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What is the formula for calculating business growth?
Business growth is calculated using the formula:
(
D
i
f
f
e
r
e
n
c
e
i
n
s
i
t
e
s
,
e
m
p
l
o
y
e
e
s
,
C
E
,
s
a
l
e
s
/
o
r
i
g
i
n
a
l
)
×
100
(Difference in sites, employees, CE, sales/ original) \times 100
(
D
i
ff
ere
n
ce
in
s
i
t
es
,
e
m
pl
oyees
,
CE
,
s
a
l
es
/
or
i
g
ina
l
)
×
100
.
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What does the 4 quarter moving average (current trend) formula represent?
It represents the average of sales over
four quarters
to identify the current trend.
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How is the seasonal factor calculated?
The seasonal factor is calculated using the
formula
:
(
4
season sales average (trend)
+
(4 \text{ season sales average (trend)} +
(
4
season sales average (trend)
+
next 4
×
season average (trend)
)
/
2
\text{ next 4} \times \text{ season average (trend)})/2
next 4
×
season average (trend)
)
/2
.
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What does the average seasonal variance formula calculate?
The average seasonal variance calculates the difference between seasonal sales and the
current trend
.
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What is the formula for calculating total seasonal variance?
Total seasonal variance is calculated by dividing the total seasonal variance by the number of
periods
.
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How would you plot the average seasonal variance on a graph?
You would plot the average
above
or
below
the
extrapolated
current trend line.
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What is the process for analyzing seasonal sales data?
Calculate the
seasonal factor
.
Determine the
average seasonal variance
.
Plot the average above or below the
extrapolated current trend line
.
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