Unit 3 Assignment Tasks New Spec

7/27/2019 Unit 3 Assignment Tasks New Spec

1/7

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

1 of 7

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.


2/7


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

2 of 7


3/7


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.

3 of 7


4/7


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

4 of 7


5/7



P4 calculate break

even using givendata to show the

level at whichincome equals

expenditure



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




5 of 7


6/7



P6 prepare an

annual cash flowforecast using

monthly data



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



6 of 7


7/7


7 of 7


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 2: w/b 5 December 2011


Unit 3 Assignment Tasks New Spec

Documents

Transcript of Unit 3 Assignment Tasks New Spec