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2.2 Financial planning - Coggle Diagram
2.2 Financial planning
2.2.3 Break even
c) Using contribution to calculate the break-even point
d) Margin of safety
b) Break-even point
total fixed costs + total variable costs = total
revenue
e) Interpretation of break-even charts
a) Contribution: selling price – variable cost per unit
f) Limitations of break-even analysis
2.2.1
Sales forecasting
b) Factors affecting sales forecasts
Economic variables
Actions of competitors
Consumer trends
a) Purpose of sales forecasts
c) Difficulties of sales forecasting
2.2.2 Sales, revenue and costs
a) Calculation of sales volume and sales revenue
b) Calculation of fixed and variable costs
2.2.4 Budgets
c) Variance analysis
d) Difficulties of budgeting
b) Types of budget
Historical
Zero
a) Purpose of a Budget