Unit 3 Assignment Tasks New Spec
Transcript of Unit 3 Assignment Tasks New Spec
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
UNIT 3: Financial Forecasting for Business
Unit content
1 Know about costs,revenue and profit in abusiness organization
Business costs: costs incurredat start up; operating costs(fixed, indirect, variable,direct costs, total costs)Revenue; sources of revenueeg sales, leasing, interest;calculating total revenue (unitsales price x number of unitssold)Calculating gross and netprofit; revenue (income)minus costs (expenditure),cost of sales, expenses(operating costs); maximizingprofits (increasing revenue)
2 Be able to prepare abreak even analysis
Break even: balancing costsor expenditure with revenuesor income; areas of profit andloss; margin of safety;methods of presentinggraphically
3 Be able to create a cashflow forecastCash inflows: capital; sales;
loans; regular and irregularinflows; timing of inflowsCash outflows: purchases;loan repayments; wages;regular and irregular outflows;timing of outflowsCash balances: openingbalance; closing balance;income per period;expenditure per period
PLTs (Personal, Learning and Thinking skills) applied to this unit:
TW team workers
IE independent enquirers
CT creative thinkers
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Unit introduction
Money is at the heart of business. It is likely to be the main reasonwhy a business was created and for it continuing to trade. This unitlooks at the financial aspects of running a business.
You will be introduced to the types of costs that a business will incur.
This is followed by exploring how the sale of products and servicesgenerate revenue and eventually how profit is made.
You will learn to produce a break-even analysis which will determine
the point at which sales equals costs. You will look at fixed andvariable costs. You will understand that sales over the break even
point produces profit; any drop in sales below the break even pointwill produce losses.
Cash flow forecasting estimates the timing and amounts of cashinflows and outflows over a particular period of time such as one year.The cash flow forecast shows if a business needs to borrow, how andwhen a decision will be needed. You will explore how cash flows can
be managed more effectively and will be given an insight into one ofthe primary causes of business failure the problem of payment
timing rather than that of profitability alone.
Remember that anyone running a small business must be able tomanage its finance successfully.
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
Centre Name: Waverley School
Centre Number: 20281
Assessment Sheets: Edexcel Level 2 BTEC First in Business
Unit Title: Unit 3: Financial Forecasting for Business
Assessor: Ms J Taitt
Agreed by Internal Verifier: Ms T Khanom
Date: _____________________________
Candidate Name:
Candidate Number:
Learning Outcomes:
Know about costs, revenue and profit in a business organisation
Be able to prepare a break even analysis
Be able to create a cash flow forecast
Scenario
You work for an accounting company as a trainee accountant. You have been given a handful of new businesses to look after,
help and advise. The businesses are as follows:
Tony's Flower Shop
EoT Discos
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
Layout of your assignment
Assignment format Evidenc
e
Comments/feedback Date
achieved
1. Front cover
a. Name
b. Edexcel BTEC First in Businessc. Unit 3 Financial Forecasting for Business
d. Waverley School
e. Centre Number: 20281f. Candidate Number:
g. Relevant Picture
2. Contents page
a. Number every page (use headers and footers)
b. Start each section on a separate pagec. Put titles for each section and use sub headings
3. Introduction
a. Using page one of this document explain what you have been asked to doand how you are going to go about doing it.
4. Complete Assignment Tasks
a. Now complete the tasks on the following grid to achieve the gradingcriteria for this unit.
5. Bibliography
a. List all textbooks and authors, articles, reports, Internet sites, businesses,adult help used for putting together your assignment.
6. Appendices
a. All information, research, documents that do not need to be in the main
part of your portfolio need to be placed in the appendices.
b. You need to label each appendix: appendix 1, appendix 2, appendix 3 ...and so on. In your main portfolio you need to refer to the appendix
otherwise the teacher will not look at it and no marks will be given.
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
Criteria Task Evidence Comments/feedback Date Achieved
P1 identify the
difference between
start up andoperating costs,
variable and fixedcosts (TW)
P2 identify the
different types of
revenue (TW, CT)
P3 outline thedifferences between
gross and net profit
M1 explain the
importance of costs,revenue and profit
for a businessorganisation
Task 1 (You will need to use the attached
Task 1 sheets to complete this task)
Produce a PowerPoint slideshow to present to
Tony who needs to start looking into costs,revenues and profit for his new flower shop
business idea.
P1 identify the difference between the different
types of costs
P2 identify the different types of revenue (eg,sales, leasing, interest)
P3 Your work must outline the differencesbetween net and gross profit
M1 Your work describe using examples:
a) the importance of costs (costs incurred atstart up; operating costs - fixed, indirect,
variable, direct costs and total costs).
b) the importance of revenue (sources ofrevenue, e.g. sales, leasing, interest, calculating
total revenue).c) the importance of profit (gross profit, net
profit, revenue, expenditure, costs of sales,
expenses, maximising profits).Review date 1:w/b 19 September 2011
Review date 2: w/b 3 October 2011
Deadline: w/b 12 December 2011
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
Criteria Task Evidence Comments/feedback Date Achieved
P4 calculate break
even using givendata to show the
level at whichincome equals
expenditure
Task 2 (You will need to use the attached
Task 2 sheets to complete this task)
Produce a report to present to EoT Discos whoneed to start calculating their break even for
their business.
P4 Your work must:
a) calculate the break even using the givendata (table using Excel)
P5show the level at which income equals
expenditure (chart using Excel)
M2 Your work must demonstrate:
a) the impact of changing costs on the breakeven point (new table and chart using Excel)
b) the impact of changing revenue on thebreak even point (new table and chart using
Excel)
P5present the
break even as an
annotated graphshowing breakeven
M2 demonstrate the
impact of changing
cost and revenuedata on the break
even point of aselected business
Review date 1: w/b 17 October 2011
Review date 2: w/b 31 October 2011
Deadline: w/b 12 December 2011
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
Criteria Task Evidence Comments/feedback Date Achieved
P6 prepare an
annual cash flowforecast using
monthly data
Task 3 (You will need to use the attached
Task 3 sheets to complete this task)
You are to hold a meeting with Tony, whowants to start up a new flower shop business to
discuss and explain his cash flow. You need toget materials ready to run through with him
during the meeting.
P6 The materials must:
a) prepare an annual cash flow using themonthly data provided (using Excel)
M3 The materials must:a) analyse the implications of regular cash
inflows for the businessb) analyse the implications of irregular cash
inflows for the businessc) analyse the implications of regular cash
outflows for the business
d) analyse the implications of irregular cashoutflows for the business
M3 analyse the
implications ofregular and
irregular cash
inflows andoutflows for a
businessorganisation
Review date 1: w/b 7 November 2011
Review date 2: w/b 21 November 2011
Deadline: w/b 12 December 2011
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ICT and Business Faculty/Curriculum Area: Business/BTEC First in Business/Unit 3 Financial Forecasting for Business/JT/September 2010
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Criteria Task Evidence Comments/feedback Date Achieved
D1 evaluate the
importance of cashflow and break
even for theeffectivemanagement of
business finance
Task 4
Produce a leaflet to businesses.
D1 It must evaluate:
a) how cash flows can contribute to managingbusiness finances. (Planning for inflows;
planning for outflows; making arrangements
for negative balances).
b) how break even can contribute to managingbusiness finances.
Review date 1: w/b 28 November 2011
Review date 2: w/b 5 December 2011
Deadline: w/b 12 December 2011