A Level Edexcel Business All Formulas (Theme 1-4) – Exam with Questions and
Answers
Acid test ratio - ✔✔✔-(Current assets - stock) / current liabilities
Average Rate of Return (ARR) - ✔✔✔-Net Return(Profit) per year/Cost of Investment (Capital
Outlay) x 100
Break-even - ✔✔✔-Fixed costs/ Contribution per unit
Capacity utilisation - ✔✔✔-(Actual level of output/ Maximum possible output) x 100
Contribution per unit - ✔✔✔-Selling price per unit - Variable cost per unit
Current ratio - ✔✔✔-Current assets/ current liabilities
Cyclical Variation - ✔✔✔-Variations in each year/number of trend years
Eight Year Moving Total - ✔✔✔-4 year sales total 1 + 4 year sales total 2
Expected Monetary Value - ✔✔✔-(Probability of Success x Expected Profit Value) +/-
(Probability of Success x Expected Profit Value)
Four Year Centred Moving Average - ✔✔✔-8 year moving total/8
Four Year Moving Total - ✔✔✔-4 year sales total
Free Float Time - ✔✔✔-EST (earliest start time) of next task - EST (earliest start time) of this
task - duration
Answers
Acid test ratio - ✔✔✔-(Current assets - stock) / current liabilities
Average Rate of Return (ARR) - ✔✔✔-Net Return(Profit) per year/Cost of Investment (Capital
Outlay) x 100
Break-even - ✔✔✔-Fixed costs/ Contribution per unit
Capacity utilisation - ✔✔✔-(Actual level of output/ Maximum possible output) x 100
Contribution per unit - ✔✔✔-Selling price per unit - Variable cost per unit
Current ratio - ✔✔✔-Current assets/ current liabilities
Cyclical Variation - ✔✔✔-Variations in each year/number of trend years
Eight Year Moving Total - ✔✔✔-4 year sales total 1 + 4 year sales total 2
Expected Monetary Value - ✔✔✔-(Probability of Success x Expected Profit Value) +/-
(Probability of Success x Expected Profit Value)
Four Year Centred Moving Average - ✔✔✔-8 year moving total/8
Four Year Moving Total - ✔✔✔-4 year sales total
Free Float Time - ✔✔✔-EST (earliest start time) of next task - EST (earliest start time) of this
task - duration
