Unit 2 - Finance for Business
Topic 1
Introduction and Costs
Topic A.1 Understand the costs involved in business
Learners should:
● understand and identify costs of a business, including:
o start-up costs – the costs incurred when setting up a business
o operating (running) costs – the costs incurred in the day-to-day running of a
business
● understand, define and identify the differences between fixed and variable costs,
direct and indirect costs, total costs
● calculate total costs (formula will not be given in the assessment)
Topic 2
Revenue
Topic A.2 Understand how businesses make a profit
Learners should:
● understand and identify how businesses make money (generate revenue) – from selling their products or services
● identify sources of revenue for a business
● calculate revenue (formula will not be given in the assessment)
● describe how businesses have to spend money (expenditure) in order to succeed
● identify types of expenditure (including overheads) businesses may have
● understand that expenditure is anything a business pays out and overheads are the everyday running costs of a business
● understand that businesses must know how much money is coming in (revenue) and going out (expenditure), before they can work out whether the business has:
o made a profit
o made a loss
● define:
o profit – revenue is more than expenditure
o loss – expenditure is more than revenue
● calculate profit (formula will not be given in the assessment)
Topic 3
Expenditure and Profit
Pages 14 - 17 Textbook
Topic 4
Breakeven Analysis 1
Topic 5
Breakeven Analysis 2
You will understand how ..................
Lesson 7
Introduction and Costs
You will understand how ..................