Unit 2 Equations

Question 1

Budget variance

Answer 1

Budgeted - Actual

Question 2

Net cash flow

Answer 2

Total Receipts - Total Payments

Question 3

Closing balance

Answer 3

Opening Balance + Net Cash flow

Question 4

Cost of Sales

Answer 4

Opening Stock + ( Purchases - Closing sales )

Question 5

Gross Profit

Answer 5

Sales revenue - Cost of Sales

Question 6

Gross profit margin

Answer 6

( Gross profit / Sales revenue aka turnover) x 100

Question 7

Net Profit aka operating

Answer 7

Gross Profit - All other expenses

Question 8

Net Profit Margin

Answer 8

( Net profit / Sales revenue aka turnover) x 100

Question 9

Added value

Answer 9

Price of finished good - total cost of raw materials

Question 10

capacity utilisation

Answer 10

(actual output / maximum possible output) x 100