CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities Essential. them.

Transcription

1 Topic: 04-Business Expense Management Know: Understand: Do: CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable Essential Make sense of problems and persevere in solving them. CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable. CC.2.2.HS.D.9 -- Essential Use reasoning to solve equations and justify the solution method Essential Make sense of problems and persevere in solving them Essential Reason abstractly and quantitatively Essential Reason abstractly and quantitatively Essential Construct viable arguments and critique the reasoning of others Essential Construct viable arguments and critique the reasoning of others Essential Model with mathematics Essential Use appropriate tools strategically Essential Model with mathematics Essential Use appropriate tools strategically Essential Attend to precision Essential Look for and make use of structure Essential Attend to precision Essential Look for and express regularity in repeated reasoning Essential Look for and make use of structure. Page 1 of 3

2 Topic: 04-Business Expense Management Know: Understand: Do: 8 -- Essential Look for and express regularity in repeated reasoning. Page 2 of 3

3 Topic: 04-Business Expense Management Which standards are students learning in this unit? CC.2.1.HS.F.5 -- Essential Choose a level of accuracy appropriate to limitations on measurement when reporting quantities. CC.2.2.HS.D.8 -- Essential Apply inverse operations to solve equations or formulas for a given variable. CC.2.2.HS.D.9 -- Essential Use reasoning to solve equations and justify the solution method Essential Make sense of problems and persevere in solving them Essential Reason abstractly and quantitatively Essential Construct viable arguments and critique the reasoning of others Essential Model with mathematics Essential Use appropriate tools strategically Essential Attend to precision Essential Look for and make use of structure Essential Look for and express regularity in repeated reasoning. Page 3 of 3

4 Topic: 04-Business Expense Management Key Learning: Managing business finances Unit Essential Question(s): In what ways does a business manage its finances? Page 1 of 3

5 Topic: 04-Business Expense Management Concept: Concept: Concept: Services CEQ - In what ways do businesses allocate funds for overhead expenses? CC.2.1.HS.F.5, CC.2.2.HS.D.8, CC.2.2.HS.D ALL ALL A,C B,C,E ALL B,C,D,G,J,M,Q,R Accounting CEQ - How do businesses account for their employees, equipment, finances, inventory and other business expenses? CC.2.1.HS.F.5, CC.2.2.HS.D.8, CC.2.2.HS.D ALL ALL A,C B,C,E ALL B,C,D,G,J,M,Q,R Financial Management CEQ - How do businesses manage their taxes, investments, and loans? CC.2.1.HS.F.5, CC.2.2.HS.D.8, CC.2.2.HS.D ALL ALL A,C B,C,E ALL B,C,D,G,J,M,Q,R Lesson Essential Question(s): How do businesses compute their monthly Lesson Essential Question(s): How do businesses complete a payroll register? Lesson Essential Question(s): How do businesses calculate taxable income? rental charge? (A) (A) (A) How do businesses calculate the total building maintenance charges? (A) How do businesses determine the total equipment rental cost? (A) How do businesses calculate the monthly telephone cost? (A) How do businesses calculate the monthly cost for electricity? (A) How do businesses calculate the total cost of professional services? (A) How do you calculate the percent of a particular business expense to the total expenses? (A) How do businesses calculate the cost of manufacturing an item and determine how many units can be produced? (A) How do businesses calculate the break-even point? (A) How do businesses use the straight-line method to calculate the annual depreciation of an item? How do businesses calcualte the book value of an item using straight-line depreciation?how do businesses use the MACRS to calculate the annual depreciation and book value? (A) How do businesses calculate the selling expenses and the net proceeds from an issue of stocks or bonds? (A) How do businesses determine the maturity value of a commercial loan? (A) How do businesses determine the cost and yield of a treasury bill? (A) How do businesses calculate the cost of inflation? (A) How do you explain and compute the gross domestic product and consumer price index? (A) How do businesses calculate total assets, liabilities, and owner's equity?how do businesses create a balance sheet?how do businesses determine the cost of goods sold? How do businesses complete a income statement? (A) Vocabulary: Vocabulary: Vocabulary: Labor Charge, Equipment Rental Cost, Utilities, Corporation, Taxable Income, Stocks, Bonds, Monthly Service Charge, Customer Charge, Underwriting commission, Prospectus, Demand Charge, Energy Charge, Peak Load, Commercial Loan/Business Loan, Maturity Kilowatts, Fuel Adjustment Charge, Consultant, Value, Prime Rate, Treasury Bill, Discount, Consultant's Fee, Rent/Lease Face Value, Yield, Inflation, Deflation, Gross Domestic Product (GDP), Real GDP, Per Capita GDP, Consumer Price Index (CPI), Page 2 of 3

6 Topic: 04-Business Expense Management Payroll Register, Manufacture, Direct Material Cost, Direct Labor Cost, Prime Costs, Time Study, Break-Even Analysis, Break-Even Point, Profit, Fixed Costs, Variable Costs, Depreciation, Estimated Life, Straight-Line Method, Salvage Value, Book Value, Accumulated Depreciation, Modified Accelerated Cost Recovery System (MACRS), Assets, Liabilities, Owner's Equity/Net Worth/ Capital, Balance Sheet, Vertical Analysis, Current Ratio, Horizontal Analysis, Cost of Goods Sold, Income Statement/Profit-Loss Statement, Net Income/Net Profit Additional Information: Attached Document(s): Page 3 of 3

7 Concept: Services CEQ - In what ways do businesses allocate funds for overhead expenses? Labor Charge - The cost of paying the people who do the job Equipment Rental Cost - The amount you pay for borrowing someone else's equipment - usually costs more the longer you use it Utilities - Public Services such as electricity, phone, Internet Access, will all cost you money Monthly Service Charge - The amount you must pay each month for using the service - for example-telephone service depends on the total number of minutes per month, the number of phone lines, the type of equipment, the type of service, and the features you have. Customer Charge - One of the costs for electricity - the basic charge for the electrical service Demand Charge - One of the costs for electricity - this depends on the peak load (the greatest number of kilowatts your business uses at one time during the month) Energy Charge - Based on the total number of kilowatt hours that your business uses during the month. Peak Load - The greatest number of kilowatts your business uses at one time during the month Kilowatts - A measure of energy use Page 1 of 7

8 Fuel Adjustment Charge - Energy Cost Adjustment; to your monthly bill to help cover increases in the cost of the fuel needed to produce your electricity. Consultant - Persons who specialize in advising the business on a particular project Consultant's Fee - Money paid to the consultant for their services - varies - could be a flat fee, by hour, or percent of cost of the project Rent/Lease - The amount of money you pay for using someone else's building or portion of it. Concept: Accounting CEQ - How do businesses account for their employees, equipment, finances, inventory and other business expenses? Payroll Register - A record of the gross income, deductions, and net income of the company's employees Manufacture - Assembe or create a product Direct Material Cost - the cost of the goods that are used to produce the item Direct Labor Cost - The wages paid to the employees who make the item Prime Costs - The total of the direct material and direct labor costs Page 2 of 7

9 Time Study - Used to determine how long a particular job should take. They may watch a typical employee perform their job, record the time and calculate the average time for each task. Break-Even Analysis - Determines how many units of a product must be made and sold to cover production expenses Break-Even Point - Point where income from sales = cost of production Profit - Units sold after the break even point will constitute a profit Fixed Costs - Usually remain the same from month to month even if the number of units produced increase - rent, salaries Variable Costs - Usually vary from month to month depending on the number of units produced cost of raw material, the cost of packaging, etc Depreciation - Spreading the cost of an item over its estimated life because it wears out over time Estimated Life - The number of years the equipment is expected to last before it wears out, is no longer needed, or is outdated Straight-Line Method - Assumes that the depreciation is the same from year to year. You calculate an annual depreciation and use it for the life of the equipment. Salvage Value - The estimated trade-in, resale, or scrap value at the end of the item's expected life Page 3 of 7

10 Book Value - The approximate value of an item after you have owned it and depreciated it for a period of time. Accumulated Depreciation - The total depreciation to date Modified Accelerated Cost Recovery System (MACRS) - Another way to calculate depreciation - uses a set percentage rate to be applied to the current book value of the equipment Assets - The total of cash, items you have purchased, and any money that your customers owe you Liabilities - The total amount of money you owe to creditors Owner's Equity/Net Worth/Capital - Assets minus liabilities Balance Sheet - Shows the financial position of your company on a certain date Shows your total assets, liabilities, and owners equity Vertical Analysis - Used to find what percent any item in a financial statement is of the totals in the statement Current Ratio - Total Assets divided by total liabilities Horizontal Analysis - Calculation of the dollar amount and the percent change from one time period to another Cost of Goods Sold - Page 4 of 7

11 The value of the beginning inventory plus the value of any goods received (receipts) minus the value of the ending inventory Income Statement/Profit-Loss Statement - Shows in detail your income and operating expenses Net Income/Net Profit - Gross Profit minus Total Operating Expenses where your gross profit is larger than your expenses Concept: Financial Management CEQ - How do businesses manage their taxes, investments, and loans? Corporation - Businesses owned by stockholders Taxable Income - If you are a corporation, you are subject to federal tax The portion of your company's gross income that remains after normal business expenses are deducted Stocks - Share of company Bonds - Promise to pay - used by companies to raise capital Underwriting commission - Money you must pay a broker for helping you sell or buy stocks or bonds Prospectus - A formal written document that gives the facts about a new offering of securities. Commercial Loan/Business Loan - Similar to personal loans but for a business Page 5 of 7

12 Maturity Value - The total amount you repay Prime Rate - The lowest rate of interest availabe to commercial customers at a given time Treasury Bill - When you buy a treasury bill or T-Bill, you are lending money to the government and in return, receive interest Discount - You buy a treasury bill at discount - less than it is actually worth Face Value - This is the amount of money you will receive on the maturity date of the bill Yield - Rate of return earned by an investor who holds a bond for a certain period of time Inflation - The general increase in the cost of goods and services over time Deflation - Occurs when prices decrease over time Gross Domestic Product (GDP) - Measure of the economic health of the nation The total value of the goods and services a nation produces in a given year Real GDP - GDP that takes inflation into account GDP - (GDP X Inflation Rate) Page 6 of 7

13 Per Capita GDP - Indicates the nation's standard of living the amount of goods and services the average citizen can afford to buy Per Capita GDP = GDP divided by Population Consumer Price Index (CPI) - Measures the upward changes for a fixed number of commodities and services, such as housing, electricity, food, and transprotation. - Page 7 of 7