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Business Paper 2 - Calculations Edexcel A Level
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Compulsory Formulas for Paper 2 Business
Terms in this set (19)
Average Costs Per Unit
Total Production Costs ÷ Total Output (Units)
Net Present Value
(Cash flow x Discount Factor) - cost of investment
Average Rate of Return
Net Return (Profit per annum) ÷ Capital Outlay Cost (start cost) x 100
Payback Period
Costs of Project (Investment) ÷ Net Cash Flow Generated x 12
Revenue
Selling Price x Units Sold
Gross Profit
Revenue - Cost of Sales
Operating Profit
Gross Profit - Expenditure
Profit After Tax
Operating Profit - Financial costs/Taxes
Gearing
Non-current Liabilities ÷ (Total Equity + Non-current Liabilities) x 100
Acid Test Ratio
(Current Assets - Inventories) ÷ Current Liabilities
Current Ratio
Current Assets ÷ Current Liabilities
Gross Profit Margin
Gross Profit ÷ Revenue x 100
Net Profit Margin
Net Profit ÷ Revenue x 100
Return On Capital Employed
Operating Profit ÷ (Total Equity + Non-current Liabilities) x 100
Labour Productivity
Output in period (units) ÷ Number of Employees Working
Labour Retention
Staff not leaving per year ÷ Average Number of Staff x 100
Labour Turnover
Number of Employees leaving during the period ÷ Average number employed during the period x 100
Absenteeism
Number of days of unauthorised absence ÷ Total Days worked by workforce over the period x 100
Total Float Time
LFT - EST - Duration of Activity
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