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UNIT 12 AND 13 - Coggle Diagram
UNIT 12 AND 13
Gov control of BS activity
Production
Illegal
Permits
Responsibilities to consume
Consumer protection law
Protect the raise of consumer. Misleading info
Responsibilities to workers
Unfair dismissal
Discriminations
Wage protection
Minimum wage
More people want to work
Working contract
Health and safety
Competitors policies
Against unfair trade
Responsibilities to the env
Control pollution
Control waste disposal
Location
Planning permits
Regional assitance
Help business if they set up in certain places
Subsidies, tax release, grants
Under populated areas
High unemployment
To reduce N people dowtown
External influence
Contraints
Limitations to Bs Activity
Technological
Every day is updating
You need to afford
Competition
What my competitors are doing?
How they react
Enviroment
Pollution
Global warming
Exploitment of resources
Sustainable development
Growth but looking after the enviroment
Gov
Fines/ penalties
Pollution permits
Passing laws
People
Consumer
Pressure groups
Share belief
Take action
Ethical decisions
Depend on the head
Cost analysis
Private costs
All costs that Business have to pay
Private benefits
All the benefits company will have
External costs
Drawbacks that have the community
External benefits
Benefits for community
Also are called externalities
PC-EC
Social cost
PB-EB
Social benefit
.
Revenue
Number of prod Sold x selling price
Profit
Revenue - All expenses/costs
Costs
Fixed or overheads
Not depend number of prod
Variable
Depend on output
Total costs
FC + VC
Direct + % of indirect
Direct
1 prod in particular
Variable
Raw material
Fixed
Machinery
Indirect
No related with one prod
Most are fixed
Rent
Variable
Service of machinery
Average cost per unit
Total cost / Output
Marginal costs
Extra direct cost of producing 1 more
Break even point
Drawbacks
.
The business can have new suppliers
Take for granted that you will sale all that you produce
There is inflation
Variable and Fixed are always the same
Account
Fixed costs / (Selling price - VC)
Maximum capacity - BEP
Safety margin
Number of products that you can sell to get profit
It is the quantity that must be produced and sold for total revenue to equal total costs
Economies of Scale
Purchasing
Get better price since you buy more
In bulk
Financial
Financial facilities
Better interest rate
Marketing
Own vehicles or Promotions
Type of machinery
Managerial
Better qualify staff
High wages
Technological
Buy modern machines
New tech
Diseconomies
Poor communication
Low morale
Workers no motivate
Slow decision making
Conselsus panel
Group of people who check the info is reliable
The forecast
Budget
Target for the future in numerical figure
Money allocated in each department
Given at the beggining of the fiscal year
Variance analysis
Budget N - Real N