Friday, July 19, 2019

Key Business Calculations and Revelant Financial Flows :: GCSE Business Finance

For my assignment I have been asked to demonstrate compentence in handling key business calculation and basicly demonstrate my understandings of the revelant financial flows. Introduction For my assignment I have been asked to demonstrate compentence in handling key business calculation and basicly demonstrate my understandings of the revelant financial flows. I am able to choose my own business, provided with information needed. For my chosen business I need to do the following: Task 1: I have been asked to explain how business may calculate break even in order to indicate profitable activity levels, to adapt break-even calculations for selected business in the light of changing cost and sale price data, then to recommend appropriate coursers of action for a selected loss making business. Task 2: In task 2 I have been asked to explain the meaning of cashflow with reference to a spreadsheet containing at least six sets of monthly data, to explain how a profitable business could go bankrupt due to cash flow problems and to recommend ways in which a selected business might control its cash flow most effectively. Task 3: I this section I have been asked to explain how a budget midht be used to monitor expenditure for one cost centre for my selected business, explain the importance of budget variance information to managers of my selected business and to recommend ways in which managers might deal with a cost centre that consistenly records an unfavourable budget variance in the caseof my selected business. Task 4: In task 4 I have been asked to explain simple ways of recording transactions for my selected business, to explain how fraud can take place in the process of recording transactions for my selected business and recommend simple fraud detection and prevention measures for a small business. Unit 3 Investigating Financial Control Task 1, a) P1 In this task I have been asked to explain how a business may calculate their break even. Break even is a calculation of profit and loss in the year. Break even is very important for any type of company, because all the types of companies need to found out where their incomes and losses meet. I own a sandwich bar company and I have to found out how could I break-even with my losses and incomings. My start up cost is around  £100,000 but that has nothing to do with on working out my break-even. To break-even I need to know my running cost, which splits in to fixed costs and variable costs. Fixed cost is a cost of my phone bills, gas bills, electricity bills, if I would be renting the property the rent cost would also be included in the fixed cost and also the tax to the

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