Chapter Name: Demonstrate an understanding of the relationship between costs, revenue and profits
Description:Learners explore the interconnections between costs, revenue generation, and profitability.
Purpuse:To comprehend how financial elements interact and impact business success.
Rational:Understanding these relationships is fundamental for financial management and sustainability.
Chapters Topics
Available costing methods are reviewed in relation to own business.
Explore and assess various costing strategies (e.g. absorption, marginal costing) relevant to your business operations.
Profit mark-up is calculated and analysed for own business.
Calculate mark-up percentages and analyse how they contribute to profitability in a practical business context.
A distinction between types of profit is made in relation to own business venture.
Differentiate between gross, operating, and net profit, and explain their significance in assessing business performance.
Competitive pricing is investigated and compared to inform effective costing and forecasting of operating a business.
Research competitors’ pricing models and use findings to guide strategic pricing and cost planning.