164-AQA-BUSS2

164-AQA-BUSS2 - tutor2u Business Blog Specification Map AQA...

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AQA - BUSS2 tutor2u Business Blog – Specification Map © Tutor2u Limited 2010 Finance This section introduces candidates to the importance of the management of finance. Candidates should understand that financial measures can be used to indicate how well a business is managed and should understand actions that can be taken to improve financial performance. Candidates will be expected to carry out calculations and to be able to interpret their results. This section builds upon ‘Financial Planning’ in Unit One. Specification Amplification Using Budgets • the benefits and drawbacks of using budgets • the calculation and interpretation of favourable and adverse variances • using variance analysis to inform decision making. Candidates should be familiar with income, expenditure and profit budgets. They will not be required to analyse budgets by price and volume, nor to use flexible budgets. Improving Cash Flow • causes of cash flow problems • methods of improving cash flow Candidates should be familiar with a range of techniques to improve cash flow including: overdrafts and short-term loans , factoring and sale or sale and leaseback of assets. Measuring and Increasing Profit • the calculation and understanding of net profit margins • the calculation and understanding of return on capital • methods of improving profits / profitability • the distinction between cash and profit. Candidates do not need any understanding of the balance sheet or income statements. Candidates do not need any knowledge of capital employed. Return on capital relates to the percentage return on a capital investment. Methods of improving profits should include cost reduction and price rises but also an understanding of the possible implications of these decisions. People in Business This section considers the issues that managers face in relation to managing the human element to make a business more effective. Candidates should appreciate the value of these techniques in tactical decision- making . Specification Amplification Improving Organisational Structures • key elements of organisational structure workforce roles • how organisational structure affects business performance. Key elements should include: levels of hierarchy / spans of control workloads / job allocation delegation communication flows. The
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This note was uploaded on 02/08/2012 for the course FIN FIN4345 taught by Professor Koij during the Spring '10 term at FIU.

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164-AQA-BUSS2 - tutor2u Business Blog Specification Map AQA...

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