22 CVP Analysis Cost behaviour: fixed and variable • Contribution margin • Break-even point • Calculation of variable cost, cost, profit or sales volume • Calculation of contribution margin and per unit • Calculation of break-even point • Calculation of selling price • Calculation of effect on profit/loss of changes in any component • Calculation of gain or loss on special decisions. • Analysis and interpretation of results to changing decisions about volumes, • pricing and costs, and accepting or rejecting special order decisions. 23 Feasibility Study- apply (Make sure that CVP analysis component from Marketing unit is covered 7/8 CVP to student business here) plans Social, environmental and ethical issues in FM Fraud, non-disclosure or distortion of financial information, business • closure or restructure and the rights of financial stakeholders. Implications for effective FM decision-making and business planning. • 24 Feasibility Study 25 Key concepts in OM/ Inputs, process and outputs • Role of OM Competitive advantage, e.g. cost leadership and product differentiation. • Implications for effective OM decision-making and business planning. • Role of operations Operational decisions purchasing, dispatching, inventory control, • – managers scheduling, maintenance and quality control involving planning, developing 26 Role of operations Strategic decisions planning, developing and controlling the activities • – managers required to create a product and supply a service. Implications for effective OM decision-making and business planning. •
22 CVP Analysis • Cost behaviour: fixed and variable • Contribution margin • Break-even point • Calculation of variable cost, cost, profit or sales volume • Calculation of contribution margin and per unit • Calculation of break-even point • Calculation of selling price • Calculation of effect on profit/loss of changes in any component • Calculation of gain or loss on special decisions. • Analysis and interpretation of results to changing decisions about volumes, pricing and costs, and accepting or rejecting special order decisions. 23 7/8 Feasibility Study- apply CVP to student business plans Social, environmental and ethical issues in FM (Make sure that CVP analysis component from Marketing unit is covered here) • Fraud, non-disclosure or distortion of financial information, business closure or restructure and the rights of financial stakeholders. • Implications for effective FM decision-making and business planning. 24 Feasibility Study 25 Key concepts in OM/ Role of OM Role of operations managers • Inputs, process and outputs • Competitive advantage, e.g. cost leadership and product differentiation. • Implications for effective OM decision-making and business planning. • Operational decisions – purchasing, dispatching, inventory control, scheduling, maintenance and quality control involving planning, developing 26 Role of operations managers • Strategic decisions – planning, developing and controlling the activities required to create a product and supply a service. • Implications for effective OM decision-making and business planning.
Scope-and-Sequence-Business-Studies-2018-1.docx