Lv3 Business P1

For this task I will be analysing the benefits and drawbacks about the business BSKYB Adding to this I will also be explaining what the words budget, fixed, variable and total costs mean. One of the key topics that I will be covering is the fact that if BSKYB does nothing with their costs what the implication would be on the business.
So what is budget? Budget is a financial document which is used to project upcoming income and expenditures. Budgeting is used by everybody who possesses a business whether it’d be a large or small business; it is a vital part of the money side of the business. The procedure may be carried out by people or by companies to estimate whether the corporation is keeping within their budget and not over expenditure.
The process for preparing a monthly budget includes:
* Listing of all sources of monthly income.
* Fixed expenses such as rent/mortgage, utilities, phone bills.
* Listing of other possible and variable expenses.
A business will always choose how much they are to spend on their resources etc from their budget which is calculated when the business starts. A budget may be prepared simply using paper and pencil, or on computer using a spreadsheet program like Excel.
Fixed cost is a cost that does NOT change even if there is an increase or decrease amount of good or service produced. Fixed costs are classed as expenses that have to be paid by the company which never changes. The cost is one of the two components of the total cost of a good or service, along with variable cost. For example one of the fixed costs of a high street shop is the rent paid for the property. The rent is still the same whether the shop sells one item or thousands.
An advantage of fixed cost would be easy to determine how much a business would need to sell to break-even or make a profit. However, should an unexpected increase in demand for products could cause the balance to be UN-even and could make it more complicated...