5 Questions
Which formula calculates the profit of a business?
Revenue - Total costs
What is the formula for calculating market share?
Sales of one product / Total sales in the market
What is the formula for calculating labour productivity?
Output over a time period / number of employees
What is the formula for calculating capacity utilisation?
Actual level of output / maximum possible output x 100
What is the formula for calculating net gain?
Expected value - initial cost of decision
Study Notes
Formulas for Business Calculations
- Profit formula: Profit = Revenue - Total Costs
- Market share formula: Market Share = (Company's Sales ÷ Total Market Sales) × 100
- Labour productivity formula: Labour Productivity = Total Output ÷ Total Labour Hours
- Capacity utilisation formula: Capacity Utilisation = (Actual Output ÷ Maximum Potential Output) × 100
- Net gain formula: Net Gain = (Selling Price - Cost Price) ÷ Cost Price × 100
Test your knowledge of basic financial concepts and calculations with this quiz. Covering topics such as revenue, costs, profit, and market capitalization, this quiz will challenge your understanding of key financial terms and calculations used in business. Perfect for anyone looking to brush up on their financial acumen or prepare for a finance-related exam.
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