equasyions

• Net gain is expected value minus the costs
• Expected value is average outcome if this decision was made many times
• Adverse variant is where actual income is less than budget or actual expenditure is more than budget
• Favourable variance is where actual income is more than budget or actual expenditure is less than budget
• Labour productivity


  Number of workers per unit =

  Total output in a given time period/ Total workers employed
• Margin of safety


  Output - Break even point
• Breakeven


  Breakeven level of output =

  Fixed cost/ Contribution per unit
• Cost of sales


  (Opening stocks + Purchases) - Closing stocks
• Gross profit margin


  Gross profit margin %=

  Gross profit/ revenue X 100
• Average cost


  Total costs/ Total outputs
• Profit


  Total revenue - Total costs
• Net profit margin


  (Net profit before tax/ Sales turnover) X 100
• Gross profit


  Sale revenue - Cost of goods sold
• Closing balance


  Opening balance - Net cashflow
• Revenue


  Price X Quantity
• Net profit


  Gross profit - Indirect costs
• Total costs


  Fixed costs + Total variable costs
• Net cashflow


  Cash inflow - Cash outflow
• Absenteeism


  Number of staff absent / Total number of staff x100
• Gross Profit Margin


  (Gross profit/ Sales revenue) X 100
• Labour Productivity


  Total outputs in time period/ Total staff employed
• Labour Turnover


  (Number of staff leaving in one year/ Average number of staff employed) X 100
• Net Profit Margin


  (Net profit/ Sales revenue) X 100
• Price Elasticity of Demand (PED)


  % change in quantity demanded/ % change in price
• YED


  % change in quantity demanded / % change in income
• Labour productivity


  Number of workers per unit =

  Total output in a given time period/ Total workers employed
• Margin of safety


  Output - Break even point
• Breakeven


  Breakeven level of output =

  Fixed cost/ Contribution per unit
• Cost of sales


  (Opening stocks + Purchases) - Closing stocks
• Gross profit margin


  Gross profit margin %=

  Gross profit/ revenue X 100
• Gross profit


  Sale revenue - Cost of goods sold
• Closing balance


  Opening balance - Net cashflow
• Revenue


  Price X Quantity
• Net profit


  Gross profit - Indirect costs
• Total costs


  Fixed costs + Total variable costs
• Net cashflow


  Cash inflow - Cash outflow
• Absenteeism


  Number of staff absent / Total number of staff x100
• Gross Profit Margin


  (Gross profit/ Sales revenue) X 100
• Labour Productivity


  Total outputs in time period/ Total staff employed
• Labour Turnover


  (Number of staff leaving in one year/ Average number of staff employed) X 100