This lesson will be about... COSTS FOR A NEW BUSINESS (part of financial planning in business plans) How do we find out how much things cost? What methods.

Slides:



Advertisements
Similar presentations
What do you think a stock control graph might look like?
Advertisements

This lesson we will be reflecting on your learning about... Motivation.
Title and Date in your books Goods and Services Please take your time to read feedback in your books and comment under your marking sticker.
Write class? Y alright We r gunna talk about communicating and stuff tday, so sort y selfs of anmd get a pen and that as we are gunna lurn abut formal.
This lesson will be looking... Finance in more depth What is profit and loss? What program would we use to create one? Why would we use one?
This lesson we will be reflecting on your learning about... Recruitment How to sell yourself...
This lesson we will be learning about Building a Successful Marketing Mix What is the marketing mix?
This lesson will be about – Putting a business idea into practice REVISION End of topic exam Monday 17 th.
1.3 – Putting a business idea into practice
This lesson we will be reflecting on your learning about... Job Adverts What information goes into an advert?
This lesson we will be reflecting on your learning about... Recruitment Skills and Attributes needed for employment.
Title and Date in your books QUESTIONS FOR AN ENTREPRENEUR Think about the entrepreneurs we looked at before the holidays, Can you remember what you wrote.
This lesson we will be learning about Branding and Differentiation What have we learnt this week?
This lesson we will learning about... SMART Objectives Setting Targets
This lesson we will be learning about 3.2 – Production Key Terms and TQM Paper What have we learnt this week?
This lesson we will be continuing our learning on... Branding and Differentiation
This lesson we will learning about... Communicating With Customers And different Media Types
This lesson we will be learning about 3.2 – Design and Research Development What businesses can you think of that aim to be the best in terms of research.
Store UNDER DESK 6.
Title and Date in your books Financial vs Non- financial Objectives What is an objective? What does “Financial” mean?
This lesson we will be putting theory into practice Task 2a - Questionnaire
This lesson we will be learning about Branding and Differentiation What is Differentiation? How is it done in the classroom?
Year 12 - Unit 1 Business Aims, Objectives and Organisation September 5 th 2008.
National 4/5 Business Management
Re-cap on sources of finance – Unit 1
This lesson will be about... BREAKEVEN TEST & REVIEW What is Sales Revenue?
Mission -v- Vision What is the difference between a mission statement and a vision statement? A mission statement is what an organization is all about.
Improving Profit Mrs Hunter. NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED.
This lesson we will be learning about... Raising Finance (Which is suitable) What are ‘cash flow problems’
This lesson we will be learning about 1.5 – Stakeholders and Conflicts What is a stakeholder?
This lesson we will be covering – Revision and Analysis Last Test of this academic year is on 1 st July
Chapter 22 Pricing, Costing, and Growth
This lesson we will be learning about The Boston Matrix What do you think this might be about?
GOALS BUSINESS MATH© Thomson/South-WesternLesson 11.2Slide Break-Even Point Calculate the break-even point for a product in units Calculate the break-even.
Financial Decision Making 3 Break-even analysis
(c) 2002 Contemporary Engineering Economics 1 Chapter 3 Cost Concepts and Behaviors General Cost Terms Classifying Costs for Financial Statements Cost.
GRADE BOUNDARIES DISTINCTION * = 90% + DISTINCTION = 80 – 89% MERIT = 70 – 79% PASS = 60 – 69% FAIL = BELOW 60% Exam Results.
Costs & Break-Even GCSE Business Studies tutor2u™
When total revenue equals total costs
Theory on Business Costs For Lesson 10. Business Costs  Some sources of finance will be available as soon as the business starts up  Some sources are.
Analyzing Your Finances
 Understand the meaning of the term break even  To be calculate the breakeven point  To be able to produce breakeven charts.
Week One Chapter five “Develop a Business Plan”
Creating a Successful Financial Plan
Calculating Costs. Costs Aim: Understand what a business costs are. HW: Ch 16 Q. 1 & 2 pg 65 & 67.
THE NFTE BUSINESS PLAN TEMPLATE
3. 22 Calculating a break-even point Calculating a break-even point The basics of break-even analysis 1  Businesses must make a profit to survive.
Pricing products Cost Behaviour 1.Direct Labour and Direct Materials are Variable Costs: – Expenses that tend to change in direct proportion to the volume.
4.2.1 Identification & Classification of Costs
BREAK EVEN ANALYSIS 2 Importance of Planning and Control w Businesses must cover costs or they will make a loss w Some new businesses will aim to only.
AS Business Studies Marketing
Financial Management Back to Table of Contents. Financial Management 2 Chapter 21 Financial Management Analyzing Your Finances Managing Your Finances.
How to Make a Statement. What is a Vision Statement? “A guiding image of success” (Allison & Kaye, 2005) What does success LOOK like?
How to Make a Statement. What is a Vision Statement? “A guiding image of success” (Allison & Kaye, 2005) What does success LOOK like?
Business Finance Costs Break-Even Analysis. Revenue and Costs “Revenue” is income earned by a firm when they sell either the goods it makes or the services.
[No Days Off]. [Problem/Unmet Need] The problem we are solving is the lack of reasonably priced baseball workouts from an experienced trainer.
A/DCI Shelley Hudson Northumbria Police Child Abuse Investigation Unit.
Financial Management Glencoe Entrepreneurship: Building a Business Analyzing Your Finances Managing Your Finances 21.1 Section 21.2 Section 21.
Break-even Analysis. Fixed Costs Fixed Costs – Fixed costs are any costs which do not vary directly with the level of output. These costs are linked to.
Break-Even Very important concept for the exam For some of you it will be building on prior knowledge.
5.2.1 COSTS, REVENUE AND PROFIT IB Business & Management IB2 Higher Level.
BREAK-EVEN (BE) Unit 2 Business Development Finance GCSE Business Studies.
MGT601 SME MANAGEMENT. Lesson 24 Aspects of Financial Management.
National 4/5 Business Management
UNIT 2 BUSINESS RESOURCES
GCSE Business Studies Unit 2 Developing a Business
Breakeven and Breakeven Charts
Aims for today Understand how businesses estimate revenues, costs and profits and why this is important. Recognise the difference between fixed and variable.
Starter Activity Complete the worksheet provided by your teacher!
IGCSE Business Studies
Presentation transcript:

This lesson will be about... COSTS FOR A NEW BUSINESS (part of financial planning in business plans) How do we find out how much things cost? What methods would a business used to find these?

Quick Quiz (1-6) A mission statement is a corporate believe, and slogan that a business would use do describe its ethos. Can you guess the who mission statements? Can you guess who these belong to?

1. “To Refresh the world”

2.“Doesn’t cost the earth”

3. “To uphold the law fairly and firmly: to prevent crime; to pursue and bring to justice those who break the law; to keep the Queen's peace; to protect, help and reassure the community: and to be seen to do all this with integrity, common sense and sound judgement.”

4. “To experience the emotion of competition, winning and crushing competitors.”

5. “By all lawful means, prevent cruelty, promote kindness to and alleviate suffering of animals”

6. “We work to help people and businesses throughout the world realize their full potential”

How did we do?

1. “To Refresh the world” – Coca Cola

2.“Doesn’t cost the earth” – Body Shop

3. “To uphold the law fairly and firmly: to prevent crime; to pursue and bring to justice those who break the law; to keep the Queen's peace; to protect, help and reassure the community: and to be seen to do all this with integrity, common sense and sound judgement.” – West Yorkshire Police

4. “To experience the emotion of competition, winning and crushing competitors.” - Nike

5. “By all lawful means, prevent cruelty, promote kindness to and alleviate suffering of animals” – RSPCA

6. “We work to help people and businesses throughout the world realize their full potential” – Microsoft

NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED NEARLY AT MY TARGET GOT IT! VERY CONFIDENT WILL HIT MY TARGET GRADE EXCEED TARGET Success Criteria < CClassify costs into fixed and variable costs Define fixed and variable costs C >Justify your choice of classification Complete the estimated costs sheet using a range of resources B >Complete the what if scenarios (additional calculations that expand knowledge) Suggest ways in which profits could be increased using theory knowledge covered in 1.3 A >QOWC and SPAG LEARNING OBJECTIVES Explore the different types of costs a business has. (fixed and variable)

Key Terms Fixed Costs – A cost that remains the same, and does not vary according to business output. E.g. Rent. This is paid whether products are being made or not e.g. rent Variable Costs – A cost that is directly linked with business output. They are expenses that change in proportion to the businesses activity. For example; The more dining tables I make, the more wood I’ll need.

Classify Costs Repayments on a loan Wages of permanent staff Phone line rental Advertising Insurance Fuel Wages of casual staff Raw Materials VAT Extension – Think of some additional fixed and variable costs

TASK Costs work sheet

Plenary [10 minutes] Think about theory we have learnt… link to objectives from previous lesson. Non –profit business will want to cover costs (breakeven/survive) Additional funds will be reinvested into business. What will private businesses want to do? (make excess amounts of profits/surplus) Reduce costs to maximize profit, These can be used for growth, expansion, diversification and advertising. The more profits made the better. Other discussion points can include… what do we do if we are making a loss?