Key Business Calculations and Revelant Financial Flows

For my assignment I have been asked to demonstrate compentence in

handling key business calculation and basicly demonstrate my understandings

of the revelant financial flows.

Introduction

For my assignment I have been asked to demonstrate compentence in

handling key business calculation and basicly demonstrate my

understandings of the revelant financial flows. I am able to choose my

own business, provided with information needed. For my chosen business

I need to do the following:

Task 1:

I have been asked to explain how business may calculate break even in

order to indicate profitable activity levels, to adapt break-even

calculations for selected business in the light of changing cost and

sale price data, then to recommend appropriate coursers of action for

a selected loss making business.

Task 2:

In task 2 I have been asked to explain the meaning of cashflow with

reference to a spreadsheet containing at least six sets of monthly

data, to explain how a profitable business could go bankrupt due to

cash flow problems and to recommend ways in which a selected business

might control its cash flow most effectively.

Task 3:

I this section I have been asked to explain how a budget midht be used

to monitor expenditure for one cost centre for my selected business,

explain the importance of budget variance information to managers of

my selected business and to recommend ways in which managers might

deal with a cost centre that consistenly records an unfavourable

budget variance in the caseof my selected business.

Task 4:

In task 4 I have been asked to explain simple ways of recording

transactions for my selected business, to explain how fraud can take

place in the process of recording transactions for my selected

business and recommend simple fraud detection and prevention measures

for a small business.

Unit 3 Investigating Financial Control

Task 1,

a) P1

In this task I have been asked to explain how a business may calculate

their break even. Break even is a calculation of profit and loss in

the year. Break even is very important for any type of company,

because all the types of companies need to found out where their

incomes and losses meet.

I own a sandwich bar company and I have to found out how could I

break-even with my losses and incomings. My start up cost is around

£100,000 but that has nothing to do with on working out my break-even.

To break-even I need to know my running cost, which splits in to fixed

costs and variable costs. Fixed cost is a cost of my phone bills, gas

bills, electricity bills, if I would be renting the property the rent

cost would also be included in the fixed cost and also the tax to the