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31 Cards in this Set

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What is the calculation for Labour Productivity?

Total output in a given period/


number of employees

What is the calculation for Advertising elasticity of demand?

%change in quantity demanded/


%change in advertising expenditure

What is the calculation for cross-price elasticity of demand?

%change in quantity demanded of A/


%change in price of B

What is the calculation for income elasticity of demand?

%change in quantity demanded/


%change in income

What is the calculation for Price elasticity of


demand?

%change in quantity demanded/


%change in price

What is the calculation for health and safety?

number of working days lost per annum for H&S reasons X100 /


Total number of possible working days

What is the calculation for Absenteeism?

number of staff absent X100 /


total number of staff

What is the calculation for turnover?

number of staff leaving during the year X100 /


average number of staff

What is the calculation for return on capital?

net profit X100 /


capital invested

How do you calculate (net) profit margin?

net profit X100 /


sales revenue

What is variance analysis?

the process of investigating any differences between forecast data and actual figures

What is cash flow?

the movement of cash into out of the business over a period of time

What is trade credit?

offered when purchasers are allowed a period of time to pay for products they have brought

What is an overdraft?

a flexible loan on which a business can draw as necessary up to an agreed limit

What is net profit margin?

the ratio that expresses a business's profit after the deduction of all costs, as a % of sales income

What is labour productivity?

measures the relationship between the amount of labour used in production and quantity of outputs of goods or services

What is labour turnover?

% of a business's employees who leave the business over a period of time

What is absenteeism?

when an employee is not present at his or her place of work

What is productivity?

measures the relationship between the resources put into an activity and the resulting output

What is division of Labour?

the breaking down of production into a series of small tasks carried out repetitively by relatively unskilled employees

What are fringe benefits?

rewards received by employees in addition to their wages or salary

What is variable pay?

a flexible form of performance related pay that offers employees a highly individual pay system related to their performance at work

What is marketing?

the process of identifying, anticipating and satisfying the needs or customers in a mutually beneficial exchange process

What is the marketing mix?

the combination of elements that influence a customer's decision whether or not to buy a product

What is capacity utilisation?

measures the existing output as a % of the


maximum possible output

What is the Boston Matrix?

a method of product analysis that examines the product of a business in terms of there market share and there market growth

What is the price elasticity of demand

measures the extent to which the quantity


demanded changes in relation to a change in price

What is penetration pricing?

is a pricing strategy aimed at gaining market share via a low entry price

What is price skimming?

occurs when a high initial price is set for a


product and this is reduced over time

What is price inelastic demand?

mean that the impact of a change in price leads to a smaller change in the quantity demanded

What is a marketing expenditure budget?

the amount of money business allocates to spend on marketing activities such as promotion