By Ian Marcouse; Marie Brewer; Andrew Hammond
This e-book has been written for AQA examination luck. greater than simply as aide to reminiscence, it selections out the foremost wisdom you would like for the AS examinations, indicates you the way to use your wisdom to the enterprise context after which demonstrates how this is built into an evaluate. quite a few perform questions written to AQA AS regular are integrated, and all have solutions within the again that can assist you revise on your own or with associates. good points of the ebook include:. - examination perception - placing you contained in the brain of the individual that may be marking you. - keyword phrases - revise successfully the entire precious key te. Read more...
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Extra info for AQA Business Studies for AS : Revision Guide
6) 37 Unit 18 Measuring and increasing proﬁt What? Calculation 2: Return on capital Unit 11 introduced the concept of proﬁt as the amount of revenue left over once all costs have been deducted. This unit introduces two new measurements that allow judgements to be made about a ﬁrm’s proﬁts. Formula Net proﬁt × 100 Capital invested Meaning Calculation 1: Net proﬁt margin Formula Net proﬁt × 100 Sales revenue This ﬁnancial ratio states the return an investor receives as a percentage of what they invest.
How are budgets set? ● Incremental budgeting – adding a certain percentage on to last year’s budget to allow for inﬂation. ● Zero budgeting – setting each budget to zero at the start of each year and asking each budget holder Setting budgets Three sets of ﬁnancial targets will usually be set within a business. These cover income, expenditure and proﬁt. The income budget (Table 14A) shows how many units of a product should be sold and at what price. For a shop, this could translate to how many customers buy and what is their average spend.
Making a proﬁt Who? What? Cash ﬂow is more often a problem for small ﬁrms than for larger organisations. The immediacy of cash ﬂow problems for a small ﬁrm is great – if the wages are not paid, no one turns up for work next week. However, even the very largest ﬁrms can fall victim to cash ﬂow problems (as Woolworth’s did in 2008). Those that over-borrow in order to ﬁnance growth will ﬁnd heavy interest payments a substantial drain on cash ﬂow. Any business featured in an exam question will be concerned with the amount of proﬁt it generates.
AQA Business Studies for AS : Revision Guide by Ian Marcouse; Marie Brewer; Andrew Hammond