Learning Outcome 3—….larty as Be able to apply the concept of marginal costing to price send,* V….— applied to those costs which change with time or level of activityAssessment Criteria 3 1 Identify operations when this is a useful tool 3 2 Calculate marginal costs and apply the result to Pr,cmo decisionsUnit Content The nature of costs in relation to sales ranging from fixed to semi-fixed to variable High fixed cost/low variable cost operations with time constraints Last minute offers price deals filling seats on planes/rooms in hotelsLearning Outcome 4 Be able to prepare budgets and compare budgets with actual resultsAssessment Criteria Unit Content4 1 Explain the main reasons for using budgets and some of their limitations 4 2 Prepare relevant operating budgets 4 3 Calculate variances between given actual and budgeted figures and comment on the resultsLearning Outcome 5• To assist with planning an operation and to measure its actual performance Limited to measurable aspects of the business and so can miss the less tangible aspects • Cash flow sales • Variances to include sales volume materials labour overheads and gross and net profit.Be able to interpret business performance from profit and loss statements and balance sheets using ratios and percentagesAssessment Criteria Unit Content5 1 Use a number of tools to analyse a given business performance to include basic sales liquidity efficiency and financial ratios.• Sales profitability gross and net profit • Liquidity ratios current test and acid test • Efficiency ratios debtors and creditors payment periods stock turnover • Financial ratios return on capital employed
