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Edexcel GCSE Business Formulae List

The document provides a list of formulas that may appear in Edexcel GCSE Business examinations. It includes formulas for calculating total costs, revenue, profit/loss, interest, cash flow, break even points, rates of return, costs of sales, gross profit, expenses and margins.

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882 views

Edexcel GCSE Business Formulae List

The document provides a list of formulas that may appear in Edexcel GCSE Business examinations. It includes formulas for calculating total costs, revenue, profit/loss, interest, cash flow, break even points, rates of return, costs of sales, gross profit, expenses and margins.

Uploaded by

latte
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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business

Formula List
for edexcel GCSE (9-1)
Business
There is a formula list provided by Edexcel on page 32 of the specification.
This resource provides a more extensive list which will help you to prepare

Confident

Not quite
for different styles of calculation questions that may appear in examinations.

Unsure
sure
Remember to learn all the formulae listed here, as no formulae will be provided in
Paper 1 or Paper 2:
Total costs
Total costs = total fixed costs + total variable costs
Total fixed costs
Total fixed costs = total costs - total variable costs
Total variable costs
Total variable costs = total costs - total fixed costs
Revenue
Revenue = sales price per unit x quantity sold
Revenue = gross profit + cost of sales
Revenue = profit + cost of sales
Profit/Loss
Profit/loss = revenue – total costs
Interest (on loans)
Interest (on loans) in % = total repayment – borrowed amount x 100
borrowed amount
Net cash flow
Net cash flow = total cash inflows – total cash outflows in a given period
Opening and closing balances in a cash flow forecast
Opening balance = closing balance of the previous period
Closing balance = opening balance + net cash flow
Total inflows in a cash flow forecast
Total inflows in a cash flow forecast = net cash-flow + total outflows
Total outflows in a cash flow forecast
Total outflows in a cash flow forecast = total inflows – net cash-flow
Break even point from a break-even chart
Break-even point from a break-even chart: when total revenue = total costs
Formula List

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Break even point using the formulae

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Break-even point in units = fixed costs
(sales price per unit – variable cost per unit)
Break even point in costs/revenue = break even point in units x sales price
Profit/loss from a break-even chart
Profit/loss from a break-even chart = total revenue - total costs
Margin of safety
Margin of safety = actual or budgeted output – break even point
Average rate of return
Average rate of return (%) = average annual profit x 100
cost of investment
Average annual profit
Average annual profit = total profit of the investment
number of years
Cost of sales
Cost of sales = sales revenue – gross profit
Gross profit
Gross profit = sales revenue − cost of sales
Gross profit margin
Gross profit margin (%) = gross profit x 100
sales revenue
Other operating expenses and interest
Other operating expenses and interest = gross profit – net profit
Net profit
Net profit = gross profit – other operating expenses and interest
Net profit margin
Net profit margin (%) = net profit x 100
sales revenue
Market share
Market share = sales of business/product x 100
total sales of the market
Percentage change
Percentage change = (change) x 100
original

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