Budgets and Managing Money Presentation 1.9

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Budgets and managing money is about what systems and skills are required in business to be successful and profitable. A business, also known as an enterprise or a firm, is an organisation involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. Business Mentor Perth – Call 0407 900 234 www.executivementors.com.au

Negócios

Comparing Investment
Opportunities
Payback Period
The time it takes to recover the initial
investment through net cash flow

Comparing Investment
Opportunities
Break-Even Point
Point at which product begins generating
money

Comparing Investment
Opportunities
Cost-Benefit Analysis
Robbie the Robot Rachel the Robot
Widgets Produced Per Hour 75 60
Value of Widgets Produced
Per Hour ($5 sale price each)
75 x 5 = 375 60 x 5 = 300
Cost of Units Produced 75 x 1.5 = 112.50 60 x .25 = 15
Total Value – Total Cost =
Estimated Benefit
375 – 112.50 = 262.50 300 – 15 = 285.00

Comparing Investment
Opportunities
Return on Investment (ROI)
Business Mentor Perth – Call 0407 900 234
www.executivementors.com.au

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