Unit 2 Business resources_Lesson1

• BTEC
• MBO
• Studiejaar 1

Today's program

• Unit overview
• Assessment criteria (Task A & Task B)
• Learning outcomes
• Check learning outcomes and evaluate lesson
  

Learning outcomes

At the end of the lesson you:

1. can mention two main types of costs, explain them and give an example for each type;

2. know what budgeting is;

3. know what variance analysis is and you can explain when  it's favourable or adverse.

4. Can work out the BEP and know the impotance of it.

Why is it important to
manage costs?

Fixed costs

Variable costs

Costs

Activity“Smell the dough” p 72

-  Make individually

- Finished? Discuss your answers with the student next to you and complete or improve your answer.

Fixed costs + example
in your private situation

Variable costs + example
in your private situation

What is budgeting?

Budgeting

It is an estimate of the income and  expenditure of a business in the future. 

1. Zero budgeting 
2. Allocated budgeting

Zero budgeting

Allocated budgeting

Money assigned for a budget. Usually set at the beginning of the year.

Departments have to ask their management for money

Variance analysis

Measuring the difference between budgeted and actual costs or sales revenue.

Case study: “Hair for Wear Ltd” 

- Work in pairs

- Finished? Compare your answers with another pair of students (close to you).

- Discuss your outcomes and complete or improve your answers.

Activity

Read "Break-even" p 73-74 till 

- Write down all the questions you have after reading it.

- Ask the student next to you the questions, make sure everything is clear and make a short summery as a pair.

Learning outcomes achieved?

1. two types of costs, explanation and example of each type; 

2.budgeting; 

3. variance analysis and explain when  it's favourable or adverse. 

4. Can work out the BEP and know the impotance of it.

Homework: read p. 75- 81, make a summery and upload it up to moodle.