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Budgeting Process

Budgeting Process. I will be able to understand Needs and Wants Fixed and Variable cost Budget and Actual Cost. April 21,2014 Homework I will create a spreadsheet for my business plan. Quiz on Budget on Thursday . What is Budget?.

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Budgeting Process

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  1. Budgeting Process I will be able to understand • Needs and Wants • Fixed and Variable cost • Budget and Actual Cost • April 21,2014 • Homework • I will create a spreadsheet for my business plan. • Quiz on Budget on Thursday

  2. What is Budget? • A budget is money plan. It shows how much you earn and how much you spend. • It helps you to control your money, plan and eliminate surprises.

  3. Difference between needs and want. • Needs • You need for survival • Food , water • Want • You like to have • Ipad, phone

  4. Difference between Fixed andVariable expenses • Fixed expenses tend to be same every month. For example rent, school fees • Variable expenses tend to fluctuate every month • Example – clothing

  5. Create fixed/variable sheet for the following example • For the month, Sarah earned $775 and tracked expenses for the month to help create a monthly budget. Create table for fixed variable expenses.  Then total fixed and variable expenses.  Also calculate total expenses.  Was income greater than or less than expenses for the month?Expenses: Tax on earnings $213, Donations $22, New pants $34, Video games $33, Going to the movies $23, House Mortgage payment $164, Phone bill $71, Food shopping $85

  6. Answer

  7. Profit/Loss A profit is made when something is sold for more than it cost to buy. It is the money made on a deal. When money is lost on a deal, it is called a loss.

  8. Profit percent • A pharmacist wishes to make 20% profit on all the make up that is sold in the chemist shop. A new range of shampoos is bought at £1.90 per bottle. How much should they be sold for? • Profit = 20% of £1.90 • = • = £0.38 • Selling price = £1.90 + £0.38 • = £2.28

  9. Profit/Loss percent • Always on cost price - Formula = ( Selling Price – cost price) X 100%

  10. Creating Spreadsheet for your business plan • Before Market place • List all the expenses • List the estimate/budget cost • Approval from your manager • Actual cost/expenses • Write down the selling price of your product

  11. Creating Spreadsheet • During Market place • - Keep track of your sale After Market place • Your final statement of • Expenses • Money Earned • Loss/Profit Percent

  12. Your Spreadsheet may look like this

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