BTEC First Business – BTEC Level 2 First Business, Unit 3 Assessment Resource Pack

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Take a look at this free sample unit from our new BTEC Level 2 First Business Assessment resource pack for the 2010 specification. This free sample unit, is Unit 3 of the BTEC First Business Assessment Resource Pack and introduces learners to business finance and the ideas of cost, revenue and profit.Our BTEC Level 2 First ARP contains ready-made assignments in addition to assignment guidance for tutors. You can also see sample learner work and assessor comments at the end of the unit.Take a look at these free BTEC Level 2 Business assignments with your BTEC Students. For more free sample material from Our BTEC Level 2 First Business resources, simple visit our site at http://www.pearsonschoolsandfecolleges.co.uk/FEAndVocational/BusinessandAdministration/BTEC/BTECLevel2FirstBusinessandAdministration/ISBN/TeachingResources/BTECLevel2BusinessAssessmentPack.aspx

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<p>Unit 3 Financial Forecasting for BusinessUnit overviewCredits: 5</p> <p>BTEC Level 2 First Business Assessment Resource Pack</p> <p>Cert / Ex Cert / Dip</p> <p>This unit introduces learners to business finance and the idea of costs, revenue and profit. Learners will understand the different types of costs which businesses face and the impact that poor management of these could have. They will know how to classify costs as well as how they are calculated. Revenue, gross and net profit are also covered and learners will learn how to distinguish between them. Again they will be given the opportunity to calculate these for different scenarios. Following their introduction to finance learners will understand how to calculate and analyse break even. At a higher level learners will be able to explain the changes and the impact this could have on a business. The final part of this unit gives learners the opportunity to investigate the cash flow of businesses. They will understand how figures in these can be manipulated and adjusted to ensure a business does not run out of cash. Assessment for this unit is a combination of written and numerical tasks, which give learners the basics required in business finance. Learners can get information for this unit through visiting speakers from banks, building societies and other financial institutions. This unit has links with Unit 16 Business Enterprise and Unit 17 Starting a Small Business.</p> <p>Assignments for this unitThe following ready-made assignments are available in this Pack.Assignment Learning outcome LO1 Know about costs, revenue and profit in a business organisation LO2 Be able to prepare a break-even analysis Assessment and grading criteria P1, P2, P3 and M1 Summary</p> <p>A1</p> <p>Costs, revenue and profit</p> <p>Learners produce a booklet for Fresh Business which covers the different types of costs a business incurs. They must also look at the different revenue streams for the business and outline the differences between gross and net profit. Evidence: a booklet about business finance Learners use suitable software to calculate break even using the data provided. They also produce a supporting handout which annotates the graph showing a clear understanding of the key terms. Following this, they adapt the data in the graphs and explain the outcomes. Evidence: break even graphs for the original and revised figures</p> <p>A2</p> <p>Break even</p> <p>P4, P5 and M2</p> <p> Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>1</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Resource Pack</p> <p>A3</p> <p>Cash flow forecast</p> <p>LO3 Be able to create a cash flow forecast</p> <p>P6 and M3</p> <p>Learners will produce a full 12-month forecast using an acceptable layout. Following this they will analyse the impact of regular and irregular cash inflows and outflows. Evidence: a completed 12-month cash flow forecast; an analysis of the 12-month cash flow forecast; a revised 12-month cash flow forecast The culmination of this unit incorporates knowledge gained from Assignments 2 and 3. Learners will create fact sheets that evaluate the break even and cash flow forecast, including judgements and diagrams to back up their work. Evidence: two fact sheets evaluating cash flow and break even</p> <p>A4</p> <p>An evaluation of break even and cash flow forecasts</p> <p>LO3 Be able to create a cash flow forecast</p> <p>D1</p> <p>2</p> <p> Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Resource Pack</p> <p>Assignment guidance for tutorsA1 Costs, revenue and profit P1P2 P3 M1Learners should create a professional looking leaflet that describes the different costs, revenue and profit a business may encounter. For P1 they should include start up, running, fixed, variable and total costs. P2 looks at the different revenue streams and P3 covers the difference between gross and net profit. Learners should be encouraged to incorporate formulas used to calculate costs, revenue and profit. For M1 learners should explain in their leaflet what costs, revenue and profit are and explaining their importance in no more than a paragraph for each.</p> <p>A2 Break even P4</p> <p>P5</p> <p>Learners will need to understand how to calculate break even. It would be advisable to begin this by ensuring learners are competent at calculating these and drawing the graphs by hand. This gives them the understanding required to then move onto creating them on spreadsheets. Some learners will require support with the formula required for this Task as well as producing the graphs. Centres may wish to create a supporting handout to assist learners with this Task. Once learners are proficient with using the spreadsheet they can then produce the graph required for P4. These should then be annotated using a word processor or desktop publishing software. These allow learners to add text boxes and arrows to annotate the graphs, demonstrating an understanding of what they are showing (P5). At the merit level (M2) learners should adapt the figures in their break even graphs and produce a supporting document which explains what they have done and what the results are showing.</p> <p>A3 Cash flow forecast P6</p> <p>M3</p> <p>Similarly to Task 2 learners should first gain experience of calculating cash flow forecasts by hand prior to commencing this task. Once they are comfortable doing this they can move onto inputting the data into their own spreadsheet (P6). Although it is not a requirement of this task, it would be beneficial to the learners if they used formula to calculate the totals and net cash flow. This allows them to manipulate the figures and demonstrate the impact of regular and irregular cash inflows and outflows for M3.</p> <p>A4 An evaluation of break even and cash flow forecasts D1The distinction task looks at both the break even and cash flow forecast and requires a detailed evaluation of the importance of these for the business. Learners should go into detail about how these can be used by a business including diagrams and judgements about their effectiveness</p> <p> Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>3</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>A1 Costs, revenue and profitBTEC Level 2 Business, Unit 1 Business Purposes</p> <p>Learner name Date issued</p> <p>Assessor name Deadline</p> <p>ScenarioYou have been working as a consultant for a company called Fresh Business, which supports new small enterprises Steve, a business owner and local entrepreneur, has identified an opportunity in his local area to set up a fish and chip shop. He has previous experience of working in the catering industry and following extensive research believes there is a gap in the local market. The area he has chosen has a population of 2,400 people and the nearest fish and chip shop is over five miles away. He has little experience of running a business and has been looking for information on what he needs to start one up. You have been working as a consultant for the company Fresh Business, which supports new small enterprises like this one. Steve will be paying a small consultancy fee and in return you will provide him with the resources and materials he requires to understand the financial aspect of running a business.</p> <p>In this assignment you will have the opportunity to provide evidence towards the following criteria:P1 P2 P3 M1 identify the difference between start up costs and operating costs, variable costs and fixed costs identify the different types of revenue outline the differences between gross and net profit explain the importance of costs, revenue and profit for a business organisation</p> <p>TASK 1 Understanding Business Finance P1, P2, P3, M1For this assignment you must create a Fresh Business booklet, which outlines the important terms Steve will come across as he sets up and runs his business. You also need to include information on how you calculate certain figures. Your leaflet should be an A5 booklet entitled Business FinanceThe Basics. It will need to have three distinct chapters. These are costs, revenue and profit. In your booklet you must cover the following areas, paying particular attention to any differences between the terms in each: What are start up and running costs?</p> <p>4 Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>What are fixed, variable and total costs? What is revenue? What is gross and net profit?</p> <p>Guidance For each section you should also explain why each factor is important for a business and what would happen if they didnt have them. You can use websites such as www.smallbusiness.co.uk or www.businesslink.gov.uk to help with this task. Useful sources of information Student Book pages 68-71 may be useful for Task 1. Your tutor will have a list of sources of information that you can use for this assignment</p> <p>Evidence checklistTASK 1 a booklet about business finance</p> <p>5 Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>A2 Break evenBTEC Level 2 Business, Unit 1 Business Purposes</p> <p>Learner name Date issued</p> <p>Assessor name Deadline</p> <p>ScenarioYou have been working as a consultant for a company called Fresh Business, which supports new small enterprises. Steve, a local entrepreneur, has identified an opportunity in his area to set up a fish and chip shop. He has previous experience of working in the catering industry and following extensive research he believes there is a gap in the local market. The area he has chosen has a population of 2,400 people and the nearest fish and chip shop is over five miles away. Steve has followed your advice from the Business Finance The Basics booklet and has begun trading. However he isnt sure if he is going to make a profit, loss or just break even. He has asked you to come up with a graph to show the figures he has given you and two suitable selling prices for his fish and chips. He can produce up to 5000 portions of fish and chips per month.</p> <p>In this assignment you will have the opportunity to provide evidence towards the following criteria:P4 P5 M2 calculate the break even using given data to show the level at which income equals expenditure present the break even as an annotated graph showing break even demonstrate the impact of changing cost and revenue on the break-even point of a selected business</p> <p>TASK 1 Chart of government role P4Using the information provided below, create a break-even graph. CostsRaw materials for fish and chips per portion 2.50 Utility bills per month 700 Insurance per month 400 Salaries per month 2,000 Lease on the premises per month 1,500 Loan repayment per month 1,200</p> <p>Selling priceFish and Chips selling price 1 5.00 Fish and Chips selling price 2 6.00</p> <p>6 Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>Advertising per month 200 Paper for wrapping the fish and chips per portion 0.30 Sauces per portion 0.20</p> <p>Once you have created your break-even graphs you must show this to Steve in the form of a fact sheet. This will outline what the graph is showing him. You need to annotate each part of the graph and give a brief description of it. After six months of trading Steve has come back to you with some revised figures. The price of his raw materials has increased by 50 per cent and he has had to double the amount he pays for his salaries. In addition to this his insurance company has increase his premiums by a further 200 per month. He predicts he will have to increase the selling price of his fish and chips to 6.50 and 8.00. Using this new data calculate the changes in the break-even point and create two new graphs for him. Include these two graphs (and the original ones) in a supporting document that explains what these changes are and the impact they may have on the business. Useful sources of information Student Book pages 41, 76 82 may be useful for Task 1. Your tutor will have a list of sources of information that you can use for this assignment.</p> <p>Evidence checklistTASK 1 break even graphs for the original and revised figures a supporting document explaining the graphs and changes made</p> <p>7 Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>A3 Cash flow forecastBTEC Level 2 Business, Unit 1 Business Purposes</p> <p>Learner name Date issued</p> <p>Assessor name Deadline</p> <p>ScenarioYou have been working as a consultant for a company called Fresh Business, which supports new small enterprises. Steve, a local entrepreneur, has identified an opportunity in his area to set up a fish and chip shop. He has previous experience of working in the catering industry and following extensive research he believes there is a gap in the local market. The area he has chosen has a population of 2,400 people and the nearest fish and chip shop is over five miles away. You have previously created a booklet for Steve, called Business Finance The Basics and a graph with break-even charts using financial information that he had provided you with. As these figures are estimates, he now wants you to show him when he is likely to have good and bad months.</p> <p>In this assignment you will have the opportunity to provide evidence towards the following criteria:P6 M3 prepare an annual cash flow forecast using monthly data analyse the implications of regular and irregular cash inflows and outflows for a business organisation</p> <p>TASK 1 Creating a cash flow forecast D1As you know, Steve is not very good with figures and has just listed them on a scrap of paper for you to work out. a) You need to use them to create a cash flow forecast for twelve months of trading.</p> <p>Opening balance for the year 10,000Forecast sales January 17,000 Forecast sales February 19,000 Forecast sales March 18,000 Forecast sales September 11,000 Forecast sales October 18,000 November 21,0000</p> <p>8 Pearson Education Ltd 2011. This material is not copyright free. Copying permitted for purchasing institution only.</p> <p>Unit 3 Financial Forecasting for Business</p> <p>BTEC Level 2 First Business Assessment Pack</p> <p>Forecast sales April 15,000Forecast sales May 11,000 Forecast sale s June 8,000 Forecast sales July 6,000</p> <p>Forecast sales December 22,000 Loan from the bank in...</p>

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