Class notes
Btec business level 3 Unit 2 P6 M4 D3
- Course
- Institution
this is a document of P6 M4 and D3 of Btec business level 3 Unit 2 will help you achieve the pass merit and distinction
[Show more]
6 reviews
By: degreesofnerd • 3 year ago
By: abdiraufali • 3 year ago
By: calistedinalyn • 4 year ago
By: Bhandz • 5 year ago
By: aadictzlol99 • 6 year ago
By: stephentucker2016 • 7 year ago
Seller
Followcjaydip95
Reviews received
Content preview
Jaydip Pravinkumar Unit 2 Costs, budgeting and break-even.Task 5 - P6, M4, D3Example of a Budget
SUMMARY ACTUAL BUDGETED OVER BUDGET UNDER BUDGET
Total income 1,432,500.00 1,318,080.00 114,420.00
Total expenses 339,760.00 314,910.00 24,850.00
Income less expenses: 1,092,740.00 1,003,170.00 89,570.00
INCOME DETAILS ACTUAL BUDGETED OVER BUDGET UNDER BUDGET
Sales 1,400,000.00 1,200,000.00 200,000.00
Interest earned 5,000.00 4,500.00 500.00
Fees 1,000.00 980.00 20.00
Commissions 10,000.00 98,000.00 -88,000.00
Rent 9,000.00 8,000.00 1,000.00
Royalties 2,500.00 2,600.00 -100.00
Other 5,000.00 4,000.00 1,000.00
Total income: 1,432,500.00 1,318,080.00 114,420.00
EXPENSE DETAILS ACTUAL BUDGETED OVER BUDGET UNDER BUDGET
Salaries and wages 246,000.00 248,000.00 -2,000.00
Commissions 10,000.00 12,000.00 -2,000.00
Advertising 6,000.00 8,000.00 -2,000.00
Delivery 0.00 0.00
Shipping 0.00 0.00
Travel 4,600.00 5,600.00 -1,000.00
Other 1,000.00 1,200.00 -200.00
Total sales expenses: 267,600.00 274,800.00 -7,200.00
Percent of total: 78.76% 87.26%
ADMINISTRATIVE
Salaries and wages 12,000.00 10,000.00 2,000.00
Employee benefits 5,000.00 6,000.00 -1,000.00
Payroll taxes 500.00 500.00
Insurance 14,000.00 14,000.00
Loans 6,000.00 5,000.00 1,000.00
Office supplies 4,000.00 4,100.00 -100.00
Travel & entertainment 200.00 190.00 10.00
Postage 300.00 320.00 -20.00
Furnishings 0.00 0.00
Contributions 0.00 0.00
Dues 0.00 0.00
Other 0.00 0.00
Total admin. expenses: 42,000.00 40,110.00 1,890.00
Percent of total: 12.36% 12.74%
SERVICE & EQUIPMENT
Accounting 1,200.00 1,500.00 -300.00
Legal 5,000.00 6,000.00 -1,000.00
Utilities 15,000.00 15,789.00 -789.00
Telephone 5,000.00 4,800.00 200.00
Equipment purchases 3,400.00 3,000.00 400.00
Rent & maintenance 560.00 600.00 -40.00
Other 0.00 0.00
Total S&E expenses: 30,160.00 31,689.00 -1,529.00
Percent of total: 0.09 0.10
, Jaydip Pravinkumar Unit 2 Costs, budgeting and break-even.Task 5 - P6, M4, D3
To achieve P6 answer the following questions:
What is a budget?
Budget is an estimated of costs, revenues and resources over a specific periods, this
is how much amount of money should be going out of the business and also coming
into the business in a set period of time.
What is the purpose of a budget?
The purpose of budget is a forecast of income and expenditures this is also a tool for
decision making for the business so it helps business to make important decision.
The purpose of budgeting is to enable the actual business performance to be
measured against the forecast business performance i.e. is the business living up to
our expectations.
What problems could your company have if its budget were not properly
maintained?
If a business was unable to maintain their budget there are lots of problem that they
might have to face and the major problem that the business might have been face is
that there will be a bad cash flows and also the profit level will drop which no
business want so this is the problem that can be faced if the budget were not
properly maintained.
How could it correct these problems?
There is a simple solution of the problem and it is that the business or a company
should have their budget properly maintained in order of the solution of the
problem.
Explain what is meant by zero budgeting.
Zero budgeting is the method for preparing cash flow budgets and operating plans
which every year must start from scratch with no pre-authorized funds.
Fixed and variable costs
Fixed costs Variable costs
Rent Wages
Salaries Electricity
Marketing Stock
Insurance Printing
Break-even
Selling price per unit £12.00
Variable costs per unit £6.70
Fixed costs £2,900
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cjaydip95. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.51. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now