BTEC Level 3 Business P6 M4 D1 D3
BTEC Level 3 Business
Unit 2 (Business Resources)- Assignment 5: Preparing financial documents.
P6: Illustrate the use of budgets as a means of exercising financial control of a selected company.
In this task, I’ll be illustrating the use of budgets as a means of exercising financial control of my selected business which is Morrison’s. A budget is a financial plan for the future of business relating to its costs. However a budget is more than just financial numbers. Budgets for incomes/ revenue and expenditures are prepared in advance and then are put in comparison with the organisation’s actual performances. There are multiple uses for budgets within the managing departments. Budgets are used to:
Control income (budgets which is earned within the organisation) and expenditures (the organisation’s overall budget that deals with the total budget cost to operate the business).
They can also be used to motivate staff to be more economically minded, pay greater attention to retail therefore think before they act.
Budget is also used to monitor the business’s financial performance.
Improve organisation.
Be more concerned on important matters and also set financial targets.
Furnish direction and co-ordination, so that the business objectives can be turned into practical reality.
Break-even point is the point at which total revenue equals total costs or expenses. At this point, there isn’t any profit or loss, it’s the break-even. A business could be turning a large amount of money, but still be making a loss. Knowing the break-even point is helpful in deciding prices, setting sales and preparing a business plan. The break-even point is a useful implement to decide on the organisation’s sales volume, average production costs aswell as sales prices.
Understanding the organisation’s break-point makes it easier to work out:
How profitable you present product line is.
How far you can process sales within the organisation before budget loss occurs.
How many products need to
Unit 2 (Business Resources)- Assignment 5: Preparing financial documents.
P6: Illustrate the use of budgets as a means of exercising financial control of a selected company.
In this task, I’ll be illustrating the use of budgets as a means of exercising financial control of my selected business which is Morrison’s. A budget is a financial plan for the future of business relating to its costs. However a budget is more than just financial numbers. Budgets for incomes/ revenue and expenditures are prepared in advance and then are put in comparison with the organisation’s actual performances. There are multiple uses for budgets within the managing departments. Budgets are used to:
Control income (budgets which is earned within the organisation) and expenditures (the organisation’s overall budget that deals with the total budget cost to operate the business).
They can also be used to motivate staff to be more economically minded, pay greater attention to retail therefore think before they act.
Budget is also used to monitor the business’s financial performance.
Improve organisation.
Be more concerned on important matters and also set financial targets.
Furnish direction and co-ordination, so that the business objectives can be turned into practical reality.
Break-even point is the point at which total revenue equals total costs or expenses. At this point, there isn’t any profit or loss, it’s the break-even. A business could be turning a large amount of money, but still be making a loss. Knowing the break-even point is helpful in deciding prices, setting sales and preparing a business plan. The break-even point is a useful implement to decide on the organisation’s sales volume, average production costs aswell as sales prices.
Understanding the organisation’s break-point makes it easier to work out:
How profitable you present product line is.
How far you can process sales within the organisation before budget loss occurs.
How many products need to