A-LEVEL EDEXCEL BUSINESS EQUATIONS
(PAPER 2) QUESTION WITH CORRECT
DETAILED ANSWERS A+ VERIFIED
closing balance - correct answers-opening balance + net cash flow
[theme 2]
sales volume - correct answers-sales revenue / selling price per unit
[theme 2]
sales revenue - correct answers-selling price X quantity sold
[theme 2]
contribution per unit - correct answers-selling price - variable cost per unit
[theme 2]
break-even point - correct answers-fixed costs / contribution per unit
[theme 2]
margin of safety - correct answers-actual output - break-even output
[theme 2]
variance analysis - correct answers-budgeted figure - actual figure
[theme 2]
gross profit - correct answers-sales revenue - cost of sales
[theme 2]
operating profit - correct answers-gross profit - operating expenses
[theme 2]
net profit - correct answers-operating profit - interest
[theme 2]
profit margin - correct answers-type of profit / sales revenue x 100
[theme 2]
current ratio - correct answers-current assets / current liabilities
[theme 2]
Unit costs (average costs) - correct answers-Total production costs / Total output (units)
[theme 2]
acid test ratio - correct answers-current assets - inventory / current liabilities
[theme 2]
working capital - correct answers-current assets - current liabilities
[theme 2]
capacity utilisation - correct answers-actual output / maximum output x 100
[theme 2]
Labour Productivity - correct answers-total output per time period / number of employees
[theme 2/3]
return on capital employed - correct answers-operating profit / total equity + non current liabilities
[theme 3]
Gearing ratio - correct answers-non-current liabilities / total equity + non-current liabilities
[theme 3]
Capital Employed - correct answers-Total equity + non current liabilities
[theme 3]
Labour Turnover - correct answers-Number of staff leaving in a year / Average number of staff
[theme 3]
Absenteeism - correct answers-Number of staff absent in time period / total staff
[theme 3]
(PAPER 2) QUESTION WITH CORRECT
DETAILED ANSWERS A+ VERIFIED
closing balance - correct answers-opening balance + net cash flow
[theme 2]
sales volume - correct answers-sales revenue / selling price per unit
[theme 2]
sales revenue - correct answers-selling price X quantity sold
[theme 2]
contribution per unit - correct answers-selling price - variable cost per unit
[theme 2]
break-even point - correct answers-fixed costs / contribution per unit
[theme 2]
margin of safety - correct answers-actual output - break-even output
[theme 2]
variance analysis - correct answers-budgeted figure - actual figure
[theme 2]
gross profit - correct answers-sales revenue - cost of sales
[theme 2]
operating profit - correct answers-gross profit - operating expenses
[theme 2]
net profit - correct answers-operating profit - interest
[theme 2]
profit margin - correct answers-type of profit / sales revenue x 100
[theme 2]
current ratio - correct answers-current assets / current liabilities
[theme 2]
Unit costs (average costs) - correct answers-Total production costs / Total output (units)
[theme 2]
acid test ratio - correct answers-current assets - inventory / current liabilities
[theme 2]
working capital - correct answers-current assets - current liabilities
[theme 2]
capacity utilisation - correct answers-actual output / maximum output x 100
[theme 2]
Labour Productivity - correct answers-total output per time period / number of employees
[theme 2/3]
return on capital employed - correct answers-operating profit / total equity + non current liabilities
[theme 3]
Gearing ratio - correct answers-non-current liabilities / total equity + non-current liabilities
[theme 3]
Capital Employed - correct answers-Total equity + non current liabilities
[theme 3]
Labour Turnover - correct answers-Number of staff leaving in a year / Average number of staff
[theme 3]
Absenteeism - correct answers-Number of staff absent in time period / total staff
[theme 3]
