Dr. Christopher E. Macabuhay – Business Teacher – Secondary Technical School – Fujairah, United Arab Emirates

Business Cost  Different Operating Cost in Operating a Business

1. Salary or Wages

Materials

Rent

Licences

Different Cost

Fixed Cost

Examples of Fixed Cost

Variable Cost

Examples of Variable Cost

Sources of Funds

 Banks

Investors/Friends

Credit Card Cash Advance

Western Banking

 Standard activities  Large door to an old bank vault.bank vault  Banks act as payment agents by conducting checking or current accounts for customers, paying checks drawn by customers on the bank, and collecting checks deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM).checking or current accountschecksAutomated Clearing House Wire transferstelegraphic transferEFTPOSautomated teller machine  Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending.term depositsbanknotesbonds installment loans

Western Banking  Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.

Western Banking  Channels  Banks offer many different channels to access their banking and other services:  Automated Teller Machines Automated Teller Machines  A branch is a retail locationbranch  Call center Call center  Mail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statements  Mobile banking is a method of using one's mobile phone to conduct banking transactions Mobile banking  Online banking is a term used for performing transactions, payments etc. over the Internet Online banking  Relationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businesses Relationship Managers  Telephone banking is a service which allows its customers to perform transactions over the telephone with automated attendant or when requested with telephone operator Telephone bankingautomated attendanttelephone operator  Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch.clarification Video banking video conference

Bank Channels

Bank Channel

Islamic Banking

 ) is banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees (known as Riba or usury) for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also Haraam (forbidden). While these principles may have been applied to historical Islamic economies, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community. [1][2]bankingIslamic lawIslamic economicsRibausuryHaraamprinciplesprivate commercial [1][2]

Budget  Definition of Budget

Cash Flow

Factors Affect the increased and decrease of Profit

Profit  “What is profit?” Simply put, profit is what 's left over after you've paid all of your expenses. Some things involved in the basic definition of profit are within your control and some are not. If you want to improve your profit, you should spend time working on the things you can control.  In order to understand profit, you must focus on the four factors that determine profit in a business.  Price - what you charge for the product or service you sell.  Quantity - the volume of products or services that you sell.  Variable costs - the costs that increase or decrease as your sales increase or decrease.  Fixed costs - those costs that do not change with increases or decreases in your sales.

Reasons for Profit

1. Increased Sales

2. Reduced Operating Cost

3. Efficient Customer Service

Reason for Decrease in Profit

Reason For Decrease of Profit

Reason for Decrease in Profit

Reason for Decrease of profit

Practice simple Calculation of Profit

Simple Calculation of Profit  Profit π = TR-TC =(Total Revenue - Total Cost) Read more: How to Find or Solve Simple Equation for Profit | eHow.com simple-equation-profit.html#ixzz1oDdruXVmHow to Find or Solve Simple Equation for Profit | eHow.com simple-equation-profit.html#ixzz1oDdruXVm

Simple Calculation of Profit  = TR-TVC-TFC =(Total Revenue-Total Variable Cost -Total Fixed Cost) Read more: How to Find or Solve Simple Equation for Profit | eHow.com simple-equation-profit.html#ixzz1oDe87LgyHow to Find or Solve Simple Equation for Profit | eHow.com simple-equation-profit.html#ixzz1oDe87Lgy

Review Basic Financial Record

Describe reputation on Cost

Profit and loss is a measure of business success and failure