Friday, 17 April 2015

Nine Key Equations for BTEC Business Unit 2 Finance

Hi All

these are the main equations that you will need to remember for the  online assessment :



  • Total Costs = Variable costs + Fixed costs


  • Variable Costs = Cost of unit x number of units sold

  • Revenue = Quantity of units sold x unit selling price

  • Profit = Total revenue - total expenditure


                                             Selling price - variable cost



  • Closing balance = net cash flow plus opening balance

  • Gross Profit = Revenue - cost of sales


  • Net Profit = Gross Profit - other expenditure

  • Working Capital (Net Current Assets) = Current Assets - Current liabilities


Good Luck and do well

Mr T






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