Anglicky v odborných předmětech "Support of teaching technical subjects in English “

1. Anglicky v odborných předmětech"Support ofteachingtechnicalsubjects in English“ Tutorial: Business Academy Topic: Economic aspect of business activity Prepared by: Ing. Marcela Zlatníková Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/04.0002 je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.

2. Business activity has two aspects – tangible and economic. TANGIBLE ASPECT Business inputs→ Business → Outputs material, raw materials, production products Workforce services Fixed assets ECONOMIC ASPECT Costs→ Business → Profit sales, other income

3. Costs • Theyrepresentconsumptionoffactorsofproductionfor a particularpurposeexpressed in monetaryunits • Itismonetaryexpressionofall business inputs • Wemustdistinguishexpendituresfromcosts, not every expense iscost • Itisnecessary to monitor costs in thecompanybecauseincurredcostsreduce profit

4. Divisionofcosts 1.BY TYPES • They express structureofthenecessarycostsofentryinto business • They are used in the 5th accountclassoftheaccountingplan • Theyincludeforexampleconsumedpurchases, services, personalcosts, depreciations, financialcosts 2. FOR PURPOSES OF FINDING OUT ECONOMY RESULTS • Operatingcosts • Financialcosts • Extraordinarycosts

5. 3. BY RELIANCE ON CHANGE IN VOLUME OF PRODUCTION • permanent (fixed) – costs do not change with the change in volume of production, they change in a leap after some time, e. g. rent • variable (changing) –costs vary with the change in volume of production. This involves further division: ∙ proportional – total costs vary directly with the change in volume of production, e.g. Consumptionof basic material ∙ progressive – total costs are rising faster than volume of production, e.g. increase in production causes pay of bonuses for work ∙ degressive –total costs are rising more slowly than volume of production, e.g. Better use of factors of production, reduction of losses

6. 4. PURPOSE ( CALCULATION ) DIVISION • direct (unit) – it can be determined directly on the calculation unit, such as consumption of basic material • indirect (overhead) – they cannot be determined directly on the calculation unit, we have to divide them, such as energy consumption 5. IN TERMS OF DEVELOPMENT • production – those expended on production of certain product • circulation – those expended on the sale of own products

7. Revenues • They are sumsexpressed in monetaryunits, thatthecompanyreceivedfromitsactivities • Main part ofrevenues are salesofownoutputsandgoods • Another part ofrevenues are financialrevenues, such as surplus in cash box in the case ofstocktakingand extra revenues • Companyrevenues are foundoutwhentheamountofoutputismultiplied by itsprice • Wemustdistinguishrevenuesfromincome, not everyincomeisrevenue

8. Divisionofrevenues 1. BY TYPES- these are revenues arranged in the 6th account class of the accounting plan, such as revenues from own outputs and goods, change in state of intercompany inventory, activation of assets developed by own activity, other operating revenues 2. FOR PURPOSES OF FINDING OUT ECONOMY RESULTS - operating revenues - financial revenues - extraordinary revenues 3. BY INTERCOMPANY DEPARTMENTS – it is about assignment of revenues to individual intercompany departments, such as production revenues, management revenues, sales revenues

9. RESULT OF COMPANY MANAGEMENT • Itexpresseslevelofcompany management in crowns • Itisfoundout by comparingcostsandrevenues • Resultofefficiencyisthe most importantindicatorwhichcharacterizescompany management • Itisdetected: √ by non-accounting – by use of profit andlossrecords √ by accounting – with help of profit andlossaccount Revenues ≻ Costs → Profit Revenues ≺ Costs→ Loss Revenues – Costs = Resultof management (profit) – Income tax

10. Tasks: 1/ Consider, whetherthefollowingcostsbelong to operational, financialorextraordinary: a/ interestsofloan b/grosswagesofemployees c/materialdamagesdue to flood d/ bank fees e/ materialconsumption f/ depreciationof DM 2/ Indicatewhichofthefollowingrevenuesbelong to operational, financialorextraordinary: a/ salesofsellinggoods b/ creditedinterests on deposits c/salesforprovidedservices 3/ Thecompany has spent in the past period totalcosts on itsactivity 2 560 000,- crowns. 24 000 piecesofgoodswere sold in thesalespriceof 137,- crowns per piece. Findouttheresultofcompany management.

11. Bibliography: • Biňovec, K. Přehled učiva k maturitní zkoušce z ekonomiky. Fortuna, 2004. ISBN 80-7168-747-2. • Švarcová Jena, ing a kolektiv, Ekonomie, stručný přehled. Ing. Jena Švarcová, Ph.D., CEED nakladatelství a vydavatelství, 2006. ISBN 80-903433-3-3. • Klínský Petr, Munch Otto, Ekonomika pro obchodní akademie a ostatní střední školy 1-4.Fortuna, 2003, ISBN 80-7168-862-2.