1. Topics Covered Business Costs Revenue Profit Expenditure
Break Even Analysis
Budgeting
Cash Flow Forecast
Profit & Loss
Balance Sheet
Maximising Profits

2. Re-cap What is the difference between start-up and operating costs?
What are fixed costs? Example?
What are variable costs? Example?
What is revenue?
How do you calculate revenue?
Define the term ‘profit’.
= 5mins

3. LO1) To define the term expenditure
UNIT TITLE: Unit 2:Finance for Business
LESSON TITLE: Expenditure/Overheads
LEARNING AIM: B
COMPETENCY FOCUS:
Key Skills (L5): you will be able to develop your numeracy skills to calculate financial transactions of a business and to interpret financial data.
Learning Objectives
By the end of the lesson, you should be able to…
LO1) To define the term expenditure
LO2) To list different examples of business expenditure
LO3) To analyse the importance of profit for a business

4. Discuss…
Reflect on the below saying: “You have to speculate to accumulate”.

5. Expenditure
Businesses have to spend money to keep it going and to succeed
Cash spent to generate sales i.e. buying stock
Types of expenditure might be :
- Staff wages
- Stock
- Fuel for delivery vans
- Heating/lighting
- Loan repayments
- Advertising/marketing
- Telephone bills

6. Overheads
Overheads = type of expenditure that is not directly related to making/producing products.
For example:
Rent
Legal fees
Insurance

7. Task 1
Which are the following are overheads? Why? Income Cash sales Wages Utilities Interest earned Tax rebate

8. Task 2
Complete BA Case Study P.g. 62