That Blue Square Thing

BTEC First Business Unit 2 - Finance for Business

Note: this page deals with the 2012 BTEC First Award in Business. Although this still exists, I've not taught it for ages and the stuff here might be out of date. I'm leaving it here as an archive in case anyone finds it useful.

Flying saucer restuarant signageCosts, Revenue, Profit and Loss

Learning Aim A: Understand the costs involved in business and how businesses make a profit

Businesses spend money and get money in when people buy things. This lets us know if they make a profit or a loss.

I've split the slides up a little differently to how I used them in class. I even added a couple of bits.

PDF iconCosts PowerPoint - covers the key definitions

PDF iconRevenue Slides - the slides I used in class to deal with the definitions linked to revenue

PDF iconRevenue calculations - some simple calculations to work through to calculate revenue

PDF iconProfit/Loss slides - the definitions and formula for profit and/or loss

PDF iconPete's Pickles - some questions to work through to check you understand the differences between fixed and variable costs and how to calculate costs, revenue and profit/loss

The crucial knowledge here is knowing what the key words mean and how to calculate total costs, total revenue and profit/loss. Note that you need to know the formulae - they won't be given to you in the exam...

Summary Points

Businesses incur costs. They generate revenue.

By knowing the total costs and total revenue we can work out if a business makes a profit or a loss.

PDF iconKey Formulae - the three key formulae from this learning aim on one slide

PDF iconCost, Revenue, Profit and Loss Specialist Language - the key terms (and a few other useful ones) all on one side of A4

The BBC Bitesize site has some resources for costs, revenue and profit. The revision notes are OK for this. The video linked to this section is a little complex at times, but is worth a look. I'd be interested to hear if you can get to grips with the ideas in it.