Equations Theme 3

Question 1

Variations

Answer 1

Actual sales - trend

Question 2

Payback period

Answer 2

Initial outlay /net cash flow per period = years/ months

Question 3

Average rate of return

Answer 3

Average annual profit / initial investment X 100

Question 4

Gearing ratios

Answer 4

Non-current liabilities / capital employed X 100

Question 5

Return of capital employed (RoCE)

Answer 5

Operating profit/ capital employed X 100

Question 6

Labour productivity

Answer 6

Total output (per period of time) / average number of employees (per period of time)

Question 7

Labour turnover

Answer 7

Number of staff leaving over period of time / average number of staff in post during the period X 100%

Question 8

Labour retention

Answer 8

Number of staff staying (over a period of time) / average number of staff in post (in time period) X 100%

Question 9

Absenteeism

Answer 9

Number of staff absent on a day / total number of staffed employed X 100%

Question 10

Expected value

Answer 10

Sum of outcome x probability

Question 11

Net gain

Answer 11

Expected value - cost

Question 12

Float time in CPA

Answer 12

LST - EST