Accounting Unit 7

3696 Words15 Pages
Fran Mackenzie | Management Accounting | Unit 7 | | Zahra Ali | 10/30/2014 |

|

Assessor's comments | Qualification | BTEC Level 3 Extended Diploma in Business | Assessor name | Fran Mackenzie | Unit number and title | Unit 7 Management Accounting ( J/502/5419) | Learner name | Zahra Ali | Assignment title | Tasks 1, 2 and 3 Regional Business Support Agency. Costs and Break Even | | Grading criteria | Achieved? | Comments | P1 | | | P2 | | | M1 | | | D1 | | | | General comments | | Action plan | | Assessor signature | Fran MacKenzie | Date | |
Issue date: 6th October 2014
Final hand in date SUBMISSION 1: 3rd November 2014
Student Name: Zahra Ali
Learner’s Declaration:
I
…show more content…
It also allows the business to keep a track of money going in and out of the business. There are two main categories that all the elements fall into:
Revenue expenditure –
This is the total amount of money spent by the business on regular operations that they are entitled to pay for that they need to run their business, this can be paid monthly or on other agreed set period of times, for example; rates, heating, lightning, water, rent, wages, maintenance, products, insurance and much more. All the revenue expenditures are continuous they need to be paid on time in order to sustain the operation of the business well and the business performance as any convenience can slow the business down. All operational costs will be counted as revenue expenditures whether it’s a variable cost, fixed cost, semi- variable or a semi-fixed cost, in order to maintain a business that runs smoothly and efficiently.
Capital expenditure –
This is the process of preserving fixed assets and the money which is spent by a company or an organisation in order to obtain it and manage this process. These fixed assets can be; vehicles, land, equipment/gears and buildings. This is also on the balance sheet documentation if businesses use this it will help them manage their business better. The capital expenditure is there to improve and purchase what the business needs in order to improve the product/service. For example if ‘’ Pizza
Open Document