2.2 - Financial Planning
2.2.1 - Sales Forecasting
a) Purpose of sales forecasts
b) Factors affecting sales forecasts:
a) Purpose of sales forecasts
b) Factors affecting sales forecasts:
- consumer trends
- economic variables
- actions of competitors
2.2.2 - Sales, Revenue and Costs
a) Calculation of sales volume and sales revenue b) Calculation of fixed and variable costs |
These 2 videos explain the definitions of key terminology used for this section of the course and how to calculate the costs and revenue needed for use in break even analysis.
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2.2.3 - Break-even
a) Contribution: selling price – variable cost per unit b) Break-even point c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis The two videos you can see above explain the process of calculating break even using the formula and graph methods in a simple way. The PowerPoint on the right goes through how break even is used, why it is beneficial, how it is calculated and what the limitations of its use are. |
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2.2.4 - Budgets
a) Purpose of budgets b) Types of budget:
d) Difficulties of budgeting |
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