Utilities Repair costs It has some limitations Management costs Variable costs All the functions tend to to the limit of productive capacity Fixed costs (overheads) Above BEP: profit Semi-variable costs Below BEP: loss according to level of production Where the total costs and revenue lines intersect Non-manufacturing overheads Appendices and exhibits Manufacturing overheads Breakeven point (BEP) They need to be paid whether or not the production takes place Total revenue: increasing line Variable costs: increasing line Indirect costs Fixed costs: straight line Financial plan Other costs Operations and management plans Material costs Horizontal axis: output (number of units) Vertical axis: cost and revenues Labour costs Marketing plan Completely attributed to the production of specific goods or services Competitive analysis Market analysis Graph fixed costs / selling price variable costs (contribution margin) Direct costs Business concept according to product Company description can be Executive summary What is spent on running the business on a daily basis Title and contents page Formula Selling price per unit Variable costs OPEX Structure Fixed costs Money spent on setting up the business or on buying long-term assets Document outlining an enterprise s objectives, strategies and projected actions in order to survive and develop within a specified time frame Business plan Variables CAPEX Tool to calculate at which sales volume the products will stop costing money and will start to generate profits Classification Costs Breakeven analysis BUSINESS STUDIES Corporate culture Budget Collection of shared values, beliefs, behaviours, attitudes and standards that determine how the members of an organisation interact both internally and externally, and that define its nature Estimate of costs, expenses, revenues and resources over a specified future period of time can be Static Flexible Aim / Effect According to final balance can be Surplus Affect organisation's productivity and performance Provide guidelines on customer care, service, product quality, concern for environment, etc. gives origin to Mission Statement about what the company is doing, why and how it is doing it at the moment Vision Picture of the future, what the company intends to do in the long term and how Balanced Deficit verified by Budgetary control Steps to draft a budget Assumptions about future economic situation of the market Consideration of more specific factors Preparation of budgets for different departments and subsidiaries Preparation of master budget Types Functional / Operating Each different department s budget used in daily operations Financial Expected assets, liabilities, and stockholders equity includes Capital and capital expenditure budget Cash or cash flow budget 356