BTEC First Business Unit 2 - Finance for Business
I was going to retire these pages in July 2021, but having looked at Google Analytics it seems people still use them. There's probably a business lesson there about knowing your client base or something...
Costs, Revenue, Profit and Loss
Learning Aim A: Understand the costs involved in business and how businesses make a profit
Businesses spend money and get money in when people buy things. This lets us know if they make a profit or a loss.
I've split the slides up a little differently to how I used them in class. I even added a couple of bits.
Costs PowerPoint - covers the key definitions
Revenue Slides - the slides I used in class to deal with the definitions linked to revenue
Revenue calculations - some simple calculations to work through to calculate revenue
Profit/Loss slides - the definitions and formula for profit and/or loss
Pete's Pickles - some questions to work through to check you understand the differences between fixed and variable costs and how to calculate costs, revenue and profit/loss
The crucial knowledge here is knowing what the key words mean and how to calculate total costs, total revenue and profit/loss. Note that you need to know the formulae - they won't be given to you in the exam...
Businesses incur costs. They generate revenue.
By knowing the total costs and total revenue we can work out if a business makes a profit or a loss.
Key Formulae - the three key formulae from this learning aim on one slide
Cost, Revenue, Profit and Loss Specialist Language - the key terms (and a few other useful ones) all on one side of A4