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32 Cards in this Set
- Front
- Back
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Market size (def) |
Total number of sales in the whole market OR TOTAL REV IN THE WHOLE MARKET |
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Market share |
Sales from one business / total market *100 |
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Market growth/ trend |
Change/original *100 |
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Percentage change |
Change/ original *100 |
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P.E.D |
% change in qd / % change in p |
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Income elasticity of demand |
% change in qd / % change in income |
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Total costs |
Total fixed costs + total variable costs |
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Total revenue |
Selling price * number of units sold |
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Profit |
Revenue - costs |
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Total cost per unit |
Total cost / no of units |
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Unit contribution |
Selling price - unit variable cost |
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Total contribution |
Unit contribution * no of units sold Or total revenue- total variable costs |
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Profit using contribution |
Total contribution - total fixed costs |
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Break even |
Total fixed costs/ unit contribution |
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Margin of safety ( MUST BE A POSITIVE NUMBER) |
Actual sales - break even point |
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Net cash flow |
Cash inflow- cash outflow |
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Opening balance (def of how it is in balance sheet) |
The closing balance from the previous month |
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Closing balance (formula) |
Opening balance + net cash flow |
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Budget variance |
Actual - budgeted amount |
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Adverse variance |
Bad for the business, resulting in worse than expected profits |
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Favourable variance |
Good for the business, resulting in higher expected profits |
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Cost of sales |
(Opening stock+purchases) - closing stock |
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Gross profit |
Sales - cost of sales |
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Net profit |
Gross profit - expenses |
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Gross profit margin |
Gross profit / sales *100 |
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Net profit margin |
Net profit / sales *100 |
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Return on capital employed |
Profit / capital invested *100 |
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Added value |
Selling price - cost of materials |
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Labour productivity |
Total output / number of employees |
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Capital productivity |
Total output / capital employed |
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Capacity utilisation |
Actual output / maximum output *100 |
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Labour turnover |
Number of employees leaving / total number of employees *100 |
