BUSINESS STUDIES FORMULAE
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IGCSE Edexcel Business Studies important formulae
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25 Terms
net cash flow
total cash inflow - total cash outflow
closing balance
net cash flow + opening balance
total costs
fixed costs + variable costs
total variable costs
variable cost per unit x quantity
total revenue
selling price x quantity sold
profit
total revenue - total costs
average cost
total costs / quantity
marketshare
business sales / total market sales x 100
break-even point
fixed costs / (selling price - variable costs per unit)
margin of safety
current output - break-even point
mark-up
profit / cost x 100
capital
assets - liabilities
net assets
total assets - total liabilities
net assets
capital employed
labour productivity
output / number of workers
capital productivity
output / capital employed
gross profit
sales revenue - cost of goods sold
operating profit
gross profit - expenses
retained profit
profit of the year after taxation - dividends
cost-plus pricing
cost + mark-up
working capital
current assets - current liabilities
acid test ratio
current assets - inventory / current liabilities
current ratio
current assets / current liabilities
operating profit margin
operating profit / revenue x 100
gross profit margin
gross profit / revenue x 100
