Year 11 Applied Business Studies

1 - COSTS AND REVENUE

Definitions of and differences between start-up & running costs / Fixed and Variable Costs

Calculating Total Costs

How to calculate Revenue

How businesses can reduce costs

The role of ICT in reducing business costs

Use of formulae.  

Subject specific terminology

Use of formula function to aid calculations

SO3 – through completion of  assignment

x

Start Up and Running Costs PPT

Nick’s Watersports case study

Jacqui Fallon worksheet (quite hard) and answers if you get stuck
Costs Exercise

Notes
Revenue PPT and some exercises

Revenue Worksheet

Simple Profit Worksheet

Exercise on Costs, Revenue and Profit 1

 Exercise on Costs, Revenue and Profit 2

Further exercise on C/R
 

If you want to briefly to introduce profit. Do not complete work on P & L accounts at this stage.

NB
Do not ignore ‘the role of ICT in reducing business costs’ – steer students away from glib statements such as ‘saves time’.  Practice answering exam question at this stage.

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

2 – BREAK EVEN

The importance of knowing Break Even Point

Calculating Break Even Point using;

Formula

Chart

Table

How Break Even Point is affected by changes in costs and revenue

Using and interpreting data – use of formulae – how changes in one variable can affect break event

Subject specific terminology

Use of excel to produce break even chart

x

Break Even Point showing limitations of use

Break Even PPT showing how diagrams are constructed

BE exercise using table and graph

BE exercise using table and graph 2

BE exercise using table and graph 3

Clubbing It – difficult exercise using ICT to manipulate BE

Same resource with Cash Flow Forecast added
 
Exercise

Exercise covering Costs and Answers

Further exercise covering how BE can be changed
 

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

3 – METHODS OF PAYMENT

Different methods of payment including cash, cheque, credit card, debit card &direct debit.

Advantages & Disadvantages of each form of payment.

Situations when different forms of payment are appropriate.

Consideration of the size of number – importance of accuracy in transactions

Subject specific terminology

Discussion of bank transfer – EFTPOS – security and cost issues

SO6, MO1 – in the relationship between customers and suppliers

x

Methods PPT – covers advantages and disadvantages of each

Exercise on VAT and trade discount

Hyperlinks to a web resource on the extent of payment methods

Grid showing adv and disadv of payment methods  and the blank version for students to complete

Case Study 1 and 2 on a shop’s use of payment methods

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

4 – FINANCIAL DOCUMENTS

Explanation of the important financial documents that a business uses. 

Students are required to complete financial documents and identify the content of each.

Students are also required to spot errors and to explain the possible consequences of these errors. 

Importance of accuracy in transactions and implications of mistakes – calculations of VAT – deductions and discounts – making balances tally – reconciling invoices etc

Subject specific terminology

Costs and Benefits of using ICT to produce documents

x

Financial Docs Powerpoint summarises the content and uses of each document

Teacher notes

Exercise to complete purchase orders and invoices

Notes on delivery notes

Simple fill in the blanks exercise (PO and DN)   

Invoice fill in the blanks

Exercise on fin doc mistakes and consequences 1

Exercise on fin doc mistakes and consequences 2

Revision task – design a revision leaflet

What am I? Simple exercise

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

5 – CASH FLOW FORECASTING

Constructing cash-flow forecasts.

In payments & Out payments.

Sources of Finance to overcome cash-flow problems.

Uses of cash-flow forecast.

Why they may inaccurate.

Difference between cash-flow & profit.

Using number – carrying balances – positive and negative numbers

Subject specific terminology

Importance of using ICT to produce accurate charts – ease of manipulation using ICT

SO6 – interpdendence between businesses and stakeholders

X

Task introducing the notion of financial and business planning

Cash Flow PPT including construction of CFF

Cash Flow PPT with useful graphics on how cash flow can be improved

Cash Flow PPT including construction and solutions

Cash Flow PPT including how to solve CF problems

Detailed Case Study leading through how Cash Flow problems occur and their possible solutions

Simple worksheet on CF

Constructing a Cash Flow

Exercise that replicates some exam questions 1

And 2

Lower level students should be able to complete a cash flow forecast.  They will not need to do a full one – usually they will be asked to complete the final four or five entries.

Middle level students will need to be able to explain the implications of a cash flow problem and they might arise.

Higher level students will need to be able to evaluate possible solutions

5 – CASH FLOW FORECASTING

(continued)

Constructing cash-flow forecasts.

In payments & Out payments.

Sources of Finance to overcome cash-flow problems.

Uses of cash-flow forecast.

Why they may inaccurate.

Difference between cash-flow & profit.

Subject specific terminology

X

SO6 – interdependence between businesses and stakeholders

X

Cash Flow exercise seems to be linked to a Simpson’s video?

Cash Flow wordsearch – good starter?

Complex task linking to P & L

‘Jake’s’ exercise on CF with grid to complete

Further CF exercise

Simple CF exercises

Useful ‘hide the answer’ game for use on IWB

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

6– BUDGETING AND VARIANCE ANALYSIS

What is a budget?

Positive and negative variances

The use and limitations of using budgets

Variance between numbers – making numerical estimates – ranges

Subject specific terminology

Costs and benefits of using ICT to manipulate data – produce charts

X

Notes on Budgets

Budget Exercise 1

Budget exercise 2 (hard)

Easier exercise – Sainsco supermarket

Dodgy Dave – Profit Centres

Revision exercise on budgets and balance sheets

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

7 – SOURCES OF FINANCE

Examine when businesses may require finance and explores the suitability of a range of sources.

Examples; overdrafts, loans, venture capital, share issues, credit

Matches the source of finance with the nature of the business requirement – often attached to questions related to profit and loss and, particularly, cash flow

Consideration of size of number to influence source of finance – calculation of interest  / percentages

Subject specific terminology

X

X

Notes on advantages and disadvantages of sources

Brief exercise on sources of finance and profit and loss

Notes and then individual case studies requiring students to choose the most suitable source of finance

Difficult activity on sources of finance and financial planning

Opportunity for good application if students can consider the business when analysing sources of finance.

The source must match the business under investigation e.g. Tesco would not borrow money from friends or family nor would they be eligible for a grant.

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

8– PROFIT AND LOSS

Construction – and meaning - of the features of a P&L account

Gross and Net Profit, Expenses and Cost of Sales – not necessary to cover tax payable, interest received or exceptional items

Using data for specific purpose – ratio analysis – percentages – comparing sets of data to make judgments

Subject specific terminology .  Reading for information – searching for financial data

Costs and benefits of using ICT to manipulate data – produce accounts

X

Profit & Loss PPT

Simple ‘fill in the boxes’ P&L exercise – similar to exam papers

Jake’s Pizzas PL exercise

P&L exercise and stakeholder analysis

Exercise analysing P&L of Northern Foods (quite tricky) with the answers if its too hard for you

Simpler questions and answers on P&L of Northern Foods.  P&L Account can be found here

NB
Refer to specification and past papers to see the very simple form of P and L account that is required. 

Students must however be able to explain how a P and L account would be used and why different stakeholders may find it useful

Topic

Content & Key Areas

Num

Lit

ICT

Cit / SMSC

WRL

Resources

Notes

Past Papers

9 – BALANCE SHEETS

Construction – and meaning - of the features of a Balance Sheet

Fixed and current assets, liabilities.
 The reason why balance sheets must balance.

Using data for specific purpose – ratio analysis – percentages – comparing sets of data to make judgments

Subject specific terminology.  Reading for information – searching for financial data

Costs and benefits of using ICT to manipulate data – produce charts

X

Balance Sheet PPT

Notes and questions on balance sheets

Example of a Balance Sheet

Explanation of the elements of a Balance Sheet

Template in which to answer Balance Sheet questions

Using the template, exercises one, two

Topic

Content & Key Areas

Resources

Notes

Past Papers

10 – REVISION EXERCISES

General and applied coverage of the whole Unit 3 specification

Emphasise should be on application to the case studies and making suitable judgements where required

ICT in business PPT – don’t overlook how ICT can help the management of finances

Revision exercises on;

Costs, revenue, cash flow and P&L with answers

Costs, Revenue, Break even and P&L

Extensive coverage of most units

Break even, P&L, cash flow and balance sheets

Financial documents and Balance sheets

Break Even and methods of payment

P&L, Methods of Payment and Financial Documents

Model exam answers – an excellent revision tool

Revision Guide 1 and 2

Full revision projects

Profit from Pizza

Dixons

Scrumptious

These can be delivered over a sequence of lessons